This is via the folks at eFX.
for bank trade ideas, Check out eFX Plus. For a limited time, get a 7-day free trial, Basic at $79 per month and Premium at $109 per month. Bring it here.
- According to the ANZ, the ECB is expected to raise interest rates by 25 basis points each in June and July, bringing the final deposit rate to 3.75%. This is in line with market expectations and indicates that the ECB’s easing cycle will start later and will be shorter than that of the Fed. ANZ suggests that this scenario will support the EUR.
-
The bank also noted that the euro has greatly affected the economic slowdown in Europe. It is believed that any further decline in the euro is likely to be due to movements in the US dollar. ANZ stated that there should be more evidence of a continued slowdown in the Eurozone before considering any adjustments to its forecast for EUR/USD.
-
As it stands, ANZ maintains its year-end target for EUR/USD at 1.14, signaling its belief in the euro’s resilience in the face of economic headwinds. This reflects the bank’s assessment of the ECB’s policy path and how it contrasts with the Fed’s approach.
- Investors will be watching developments in both Europe and the US closely to see how they shape currency movements in the coming months
–
Previous previews:
- The ECB meeting takes place on Thursday, June 15th and is scheduled to be announced at 1215 GMT (815 EST).
- ECB President Lagarde’s press conference follows at 1245 GMT (845 EST).
