Eurozone money markets now price in around 190 bps of ECB hikes by December – Reuters

Eurozone money markets now price in around 190 basis points (bps) of European Central Bank (ECB) rate hikes by December, compared to 140 bps on Wednesday, Reuters reported on Thursday.

Earlier in the day, ECB policymaker Francois Villeroy de Galhau noted that inflation in the euro area was not only higher but also broader.

Market reaction

The shared currency is having a difficult time finding remand in the risk-averse market environment on Thursday. Although the EUR/USD pair managed to recover modestly from daily lows, it was last seen losing 0.3% on the day at 1.0412.