ECB's hawkish tone post-data

Interesting to hear the latest from the ECB, especially after that CPI print for the Eurozone came in slightly hotter than anticipated. Lagarde's comments, even if subtly, seemed to reinforce a more cautious stance on easing, leaning into the 'data dependent' narrative with a slight hawkish tilt. It’s not a dramatic shift, but it's enough to make you wonder if the market was perhaps pricing in cuts a bit too aggressively for the back half of the year.

I’m keeping a closer eye on $EURUSD now. It had a brief pop on the news but didn't sustain it. Seems like the market is still digesting whether this is just jawboning or a genuine signal of delaying the inevitable. I'm certainly not looking for any aggressive shorts on the euro just yet, but the long side looks less compelling than it did a week ago. Need to see how the next set of PMIs and employment data shapes up before making any firm calls.