This week’s strikes are nearly totally pushed by US-related occasions. The one Euro enter comes from scheduled ECB speeches, which up to now have strengthened the much less dovish tone set by President Christine Lagarde final week, ING’s FX analyst Francesco Pesole notes.
EUR/USD’s path at the moment is about by the US Greenback for now
“Croatia’s central financial institution chief, Boris Vucic, confirmed the brand new consensus on the ECB yesterday, saying the financial institution is in a ‘superb place’ and will anticipate ‘one other projection’ – which means September – earlier than making its subsequent transfer. Markets are pricing in 15bp for September, 17bp for October, and 30bp for December.”
“From an FX angle, the influence isn’t big. EUR/USD surged final week on the ECB’s hawkish shift, however short-term price differentials aren’t driving G10 FX past central financial institution occasions. As famous, EUR/USD’s path at the moment will probably be principally set by the greenback, with some help doubtless close to 1.1400 and a potential push above 1.1500 by the week’s finish.”
