European Central Bank (ECB) Governing Council member Gediminas Šimkus said on Monday that there was a greater than 50% probability of more than three rate cuts this year, per Reuters.

Šimkus further noted that geopolitical shocks, such as an escalation of the Israel-Iran conflict, could cause them to delay the first rate cut to July from June.

Market reaction

EUR/USD showed no immediate reaction to these comments. At the time of press, the pair was trading modestly higher on the day above 1.0650.