Euro Falls to Eight-Month Low on ECB Dovish Signals; Traders Scale Back Rate-Hike Bets

According to Jin10, on June 23, the euro fell to its lowest level since August amid weak economic data and dovish comments from ECB President Christine Lagarde. German private sector and French business activity contracted, with the currency touching intraday lows. Option markets showed investor bearish sentiment on the euro at its highest in over three months.

Lagarde stated Monday that the ECB need not take a more hawkish response to impacts from regional conflicts. Her comments contrasted sharply with U.S. Federal Reserve Chair Jerome Powell's stronger inflation signals last week, according to Francesco Pesole, a currency strategist at ING.