Euro: ECB speakers guide expectations – ING

Chris Turner at ING says the Euro’s focus this week is on European Central Bank communication after last week’s rate hike, with markets assigning only a small probability to another move in July. He notes the EUR/USD advance has been underwhelming and suggests the pair does not necessarily need to trade above 1.1650 in current conditions.

ECB communication and EUR/USD levels watched

"Following last week's ECB rate hike, the focus this week will be on whether and when it needs to follow up with a second."

"Presumably, the ECB will want to keep all its options open, but it finds itself in a more comfortable position now that the market prices only a 16% chance of a rate hike in July."

"The EUR/USD rally has been less than impressive so far, and it is not clear that it needs to trade above 1.1650 today."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)