Lagarde Hints at Delayed Interest Rate Hikes Amid Dovish Tone

European Central Bank (ECB) President Christine Lagarde has signaled that any further interest rate hike by the ECB will depend on future developments. In a speech, she stated that the central bank would decide 'meeting by meeting' what is appropriate for interest rates, whether to hold, increase, or cut them.

Lagarde added that cutting rates 'is very unlikely at the moment,' but her tone was slightly more dovish than usual, with an FXS Speechtracker score of 4.4/10 below her historic average of 5.7/10.

The mixed message from Lagarde suggests that the ECB may take a patient approach to interest rates, awaiting stronger evidence on inflation dynamics before making any decisions.

Meanwhile, the Euro has held gains against the Canadian Dollar amid lower oil prices, with the Canadian economy's reliance on oil exports contributing to its vulnerability to price fluctuations.