ECB’s Centeno hints at rate cuts at some point during 2024

European Central Bank’s Governing Council member Mario Centeno said on Wednesday that the policy will remain tight for some more time but noted that rates should start to come down at some point during 2024, as reported by Reuters.

“Monetary policy in terms of fixing key rates is at the maximum of this cycle,” Centeno added. These comments don’t seem to be having a significant impact on the Euro’s performance against its rivals. As of writing, EUR/USD was up 0.15% on the day at 1.0975.

The EUR/USD currency pair maintained its gains on Wednesday, when it reached its lowest points in three weeks, while picking up bids to 1.0985 early on Thursday morning in Asia.

In doing so, the Euro pair applauds a generally weaker US Dollar amid low US inflation statistics and hawkish remarks from European Central Bank (ECB) officials. But amid typically quiet trading hours of the day, looming worries about a US default, nervousness over a few more signs of US inflation, as well as financial problems, provide a challenge to pair buyers.