EUR/USD reached its highest level in almost two weeks on Monday at 1.0700. However, in the opinion of ING economists, the pair could drop today towards 1.06.
European hawks in the spotlight
“EUR/USD was helped yesterday by comments from ECB ultra-hawk Robert Holzmann that the ECB should make four more 50 basis point rate hikes. ECB chief economist Philip Lane tried to calm things down suggesting the central bank should not go on autopilot after what should be a 50 basis point rise this month. But the market is more sensitive to hawks given persistent inflation data.”
“We don’t see any ECB speakers scheduled for today. Jerome Powell’s testimony should dominate today and could push EUR/USD back to the lower end of the 1.0600-1.0700 range.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
