- EUR/USD bulls come up for more air on hawkish ECB commentary.
- Eyes will turn to red calendar events this week.
EUR/USD has been trading near a 9-month high for the best part of the start of the week as the market’s bank on rate hikes from the European Central Bank at the same time that they start to price a less aggressive Federal Reserve. EUR/USD vaulted the prior higher and scored a fresh bull cycle high of 1.0927.
In trade on Monday, futures have priced out almost any chance the Fed could move by 50 basis points next month and have steadily lowered the likely peak for rates to 4.75% to 5.0%, from the current 4.25% to 4.50%. By contrast, ECB policymaker Peter Kazimir said on Monday that inflation easing was good news but added that it was not a reason to slow the pace of interest rate hikes, as reported by Reuters.
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