While markets were largely unmoved by the ECB’s monetary policy statement last Thursday, the tone of the statement and President Lagarde’s press conference was very much a dovish one. This subtle shift in tone is an important scene setter as the ECB nears a likely first cut in June. Market interest rate expectations were little moved following the press conference, while the subsequent weakness in the Euro largely reflects broad-based dollar strengthening on the back of strong US inflation data and rising geopolitical tensions, with the Euro holding ground against other major currencies.