EUR/USD Declines After Lagarde's Dovish Comments, October Rate Hike Chances Slump

The EUR/USD pair declined to around 1.3335 during early Asian trading hours on Wednesday after European Central Bank President Christine Lagarde's dovish comments.

Lagarde stated that rising bond yields will curb economic expansion and limit the transfer of elevated energy costs to inflation, hinting at a more cautious policy stance.

As a result, traders pared monetary-tightening bets, with less than 40% now seeing a hike by the ECB in the October policy meeting, according to Bloomberg.