ECB’s Villeroy: Do not expect rate hike at next week's meeting

Dhwani Mehta FXStreet

European Central Bank (ECB) Governing Council (GC) member and Bank of France Governor, François Villeroy de Galhau, urged patience on the bank’s interest rate move amid the Middle East conflict.

Key quotes

We must remain calm amid the Iran crisis.

Expects French economic growth to remain on target.

Iran conflict has raised uncertainty.

Expects slightly more inflation, less growth due to conflict.

Inflation in France will remain low, does not see stagflation.

Energy prices is a small part of consumption.

Do not expect rate hike at next week's ECB meeting.

Market reaction

At the time of writing, EUR/USD is trading 0.21% higher on the day at 1.1632, little affected by these comments.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.19%	-0.22%	-0.03%	-0.11%	-0.72%	-0.24%	-0.19%
EUR	0.19%		-0.03%	0.17%	0.08%	-0.53%	-0.04%	0.01%
GBP	0.22%	0.03%		0.19%	0.11%	-0.50%	-0.01%	0.04%
JPY	0.03%	-0.17%	-0.19%		-0.08%	-0.70%	-0.22%	-0.17%
CAD	0.11%	-0.08%	-0.11%	0.08%		-0.61%	-0.13%	-0.08%
AUD	0.72%	0.53%	0.50%	0.70%	0.61%		0.48%	0.56%
NZD	0.24%	0.04%	0.01%	0.22%	0.13%	-0.48%		0.05%
CHF	0.19%	-0.01%	-0.04%	0.17%	0.08%	-0.56%	-0.05%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Week ahead: Central bank and earnings bonanza could roil markets

After joining the rate-hike club in September, the Federal Reserve looks set to stand pat in October, waiting to assess more data before deciding to hike again. Whilst this isn’t an unusual move for a central bank, it somewhat contradicts Fed Chair Kevin Warsh’s new mantra of data dependency and zero forward guidance.

CFTC Report: WTI rally runs ahead of positioning

The week in one sentence: WTI prices surged while speculative longs were cut in the week to October 20, creating the clearest price/positioning divergence. Sterling and the Canadian Dollar led the constructive currency shift, while Yen longs also rebuilt. Speculators turned less constructive on the WTI, reducing their net exposure to around 89.3K contracts.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.