ECB’s Rehn: Direction of monetary policy is clear

• Our monetary policy stance is becoming less restrictive
• Policy direction is clear as rate cuts have already begun
• Pace and scale of rate cuts will be decided meeting by meeting
• Sees inflation stabilising at 2% target during 2025

It’s the first chance for the ECB to confirm market expectations of a rate cut later this month but they’re still sticking to the “meeting by meeting” stance for now. The euro is still down against the dollar today though, with EUR/USD now down 0.2% to 1.1109 at the lows for the day. Large option expiries at the 1.1100 level are now in focus.

This article was written by Justin Low at www.forexlive.com.