In an interview with CNBC on Tuesday, European Central Bank (ECB) President Christine Lagarde said that the ECB will cut rates soon, barring any major surprises, per Reuters.

"Subject to no development of additional shock, it will be time to moderate restrictive monetary policy in reasonably short order," Lagarde added and said that they are observing a disinflationary process that is moving according to the expectations.

She further noted that geopolitical events' impact on commodity prices are not very significant so far.

Market reaction

EUR/USD came under modest bearish pressure with the immediate reaction. At the time of press, the par was virtually unchanged on the day at 1.0627.