ECB's Muller: I expect inflation to accelerate in the coming months

The euro moved back above $1.17, supported by renewed hawkish signals from the ECB. Comments from policymaker Muller pointing to a potential pickup in inflation reinforced expectations that the current pause in rates may not last long.

While the ECB kept rates unchanged, the tone has clearly shifted. Rising energy costs and persistent price pressures are keeping inflation risks alive, pushing markets to price in multiple rate hikes through 2026, with a possible move as early as July.

R1: 1.1760S1: 1.1690
R2: 1.1790S2: 1.1640
R3: 1.1880S3: 1.1550