Traders have adjusted their expectations for European Central Bank (ECB) rate cuts, now pricing in a deposit rate of 1.84% by the end of the year, down from 1.88% on the previous Friday. This shift reflects a recalibration of market expectations regarding ECB monetary policy. More ECB officials appear to be leaning towards a pause in rate adjustments for April, according to ECB sources reported by Bloomberg. This sentiment suggests a potential shift in the ECB's approach to managing interest rates, indicating a growing consensus among ECB members. Despite earlier expectations, traders have reduced their bets on ECB rate cuts, now anticipating a total of 58 basis points by year-end. Additionally, the likelihood of an April rate cut has decreased to 65% from an earlier estimate of 85%, signaling a more cautious outlook among market participants. The EURUSD has also reacted, falling below its 100 hour moving average, while ERM5 has decreased by 4 basis points.