ECB's Muller says the chance of rate hike has increased but should not rush, need to see if the surge in energy prices is transitory or not

Muller’s comments suggest a nuanced shift in the ECB's stance, indicating that while the likelihood of a rate hike is rising, caution remains due to uncertainty around energy price volatility. Traders should watch for how this might influence market expectations for future ECB meetings and broader Eurozone economic conditions, particularly through the lens of fixed income and FX markets.