ECB's Muller says it is increasingly likely that the ECB needs to raise rates; there are already signs that rising energy prices are being passed on

ECB's Muller indicating a likely rate hike suggests a shift towards a more hawkish stance, particularly as rising energy prices could exert inflationary pressures. This scenario likely increases market expectations for tightening, which may subsequently impact EUR dynamics and fixed income yields. Traders should be attuned to how this could shape central bank communication and affect broader risk sentiment.