⚡ ECB’s Wunsch: US-Iran deal confirmation before June meeting won’t derail interest rate hike hopes

**BREAKING: ECB Rate Hike Path Stays Firm Despite Geopolitical Developments**

European Central Bank policymaker Pierre Wunsch confirmed Wednesday that the ECB remains committed to raising interest rates at next week’s June meeting, regardless of potential US-Iran diplomatic developments. In an interview with the Financial Times, the Belgian central bank governor indicated that confirmation of a US-Iran deal before the policy meeting would not alter the central bank’s tightening trajectory.

The statement signals the ECB’s determination to combat inflation despite shifting geopolitical dynamics that could influence energy markets and economic stability. Wunsch’s comments suggest policymakers are prioritizing domestic price pressures over external political developments, reinforcing expectations for continued monetary tightening across the eurozone.

Traders should prepare for euro volatility heading into the June meeting, with rate-sensitive instruments likely to react to this hawkish positioning. European bond yields may continue their upward pressure as markets price in the anticipated hike.

**

FXnCO Insight

** Position for a June ECB rate increase with confidence—geopolitical headlines won’t override the central bank’s inflation-fighting mandate.

Source: FXStreet