European Central Bank (ECB) policymaker Madis Muller stated on Wednesday that a fast resolution in the Strait of Hormuz is necessary for the ECB to maintain its current interest rates in June [1]. Muller also commented on the Eurozone's economic outlook, emphasizing that the region has not entered stagflation and that he sees no reason to discuss a recession at this time [1]. Following Muller's remarks, the EUR/USD currency pair experienced bearish pressure, declining by 0.3% and trading at 1.1705 [1].
CONCLUSION
ECB's Madis Muller highlighted geopolitical risks as a key factor for the upcoming rate decision, while dismissing concerns about stagflation or recession in the Eurozone. The market responded negatively, with EUR/USD dropping 0.3% after his comments.