According to Chris Turner of ING, the European Central Bank's statement following last week's rate hike is the Euro's main focus this week, with markets giving another move in July very little chance. He points out that the EUR/USD rise has been lackluster and says that under the current circumstances, the pair does not absolutely need to trade above 1.1650.
EUR/USD values and ECB communication were monitored.
"The focus this week will be on whether and when it needs to follow up with a second rate hike, following last week's ECB rate hike."
"The ECB is in a more comfortable position given that the market values only a 16% chance of a rate hike in July, but presumably it will want to keep all its options open."
"So far, the EUR/USD gain has not been very impressive, and it is unclear whether it needs to trade over 1.1650 today."
EUR/USD values and ECB communication were monitored.
"The focus this week will be on whether and when it needs to follow up with a second rate hike, following last week's ECB rate hike."
"The ECB is in a more comfortable position given that the market values only a 16% chance of a rate hike in July, but presumably it will want to keep all its options open."
"So far, the EUR/USD gain has not been very impressive, and it is unclear whether it needs to trade over 1.1650 today."
