EUR/USD pared again a few of yesterday’s features however is holding above 1.1700, BBH’s FX analysts report.
Lagarde’s steerage in focus as ECB holds
“The ECB is extensively anticipated to maintain the coverage fee unchanged at 2.00%. With no new ECB financial projections launched at this assembly, President Christine Lagarde’s post-meeting press convention will likely be key for coverage insights.”
“In our view, the bar for extra ECB rate of interest cuts is excessive which is EUR supportive. First, Eurozone companies inflation nonetheless has a ways to journey to guarantee that inflation stabilizes on the goal on a sustainable foundation.”
“Second, the Eurozone July PMI suggests personal sector financial exercise is slowly choosing up tempo. The composite PMI rose greater than anticipated to an 11-month excessive at 51.0 (consensus: 50.7) vs. 50.6 in June pushed by sooner companies sector progress momentum (51.2 vs. 50.5 in June) and a slower contraction in manufacturing exercise (49.8 vs. 49.5 in June).”
