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ECB's Villeroy: Timing and size of ECB rate cuts depend on data

European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Wednesday that the timing and the size of the ECB rate cuts will depend on data. 

Villeroy further reiterated that they will be at the 2% inflation target in the coming year.

Earlier in the day, ECB Vice President Luis de Guindos said that while increasing defense spending across Europe was the "number one priority", he noted that there is a need to guarantee budget stability in accordance with the bloc's fiscal rules, per Reuters.

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen losing 0.4% on the day near 1.0900.

US Dollar strengthens ahead of Fed decision

The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, ticks up and recovers above 103.50 at the time of writing on Wednesday as the US Dollar (USD) strengthens against most major currencies.
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AUD/USD slumps to near 0.6330 as USD rebounds ahead of Fed’s policy

AUD/USD corrects further to near 0.6330 as the US Dollar bounces back ahead of the Fed’s monetary policy decision and dot plot.
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