ECB's Makhlouf Warns Direct Price Pressures May Persist Longer

ECB Governing Council member Gabriel Makhlouf cautioned that direct price pressures may not dissipate as quickly as expected, signaling a potentially more hawkish stance within the ECB on the inflation outlook. No specific data points were cited. EUR/USD and EUR/GBP are the primary pairs to watch. Hawkish ECB commentary can support the euro by pushing back against rate cut expectations, potentially lifting EUR bids if markets had priced in a faster easing path.