EUR/USD has been consolidating between 1.0643 and 1.0762 since 1 Jun, ahead of the Euopean Cental Bank (ECB) meeting on this Thursday. Risk is for the central bank to sound more hawkish, which could trigger a re-price higher of rate hikes expectations, lending support to the euro, economists at OCBC Bank report.
Upside potential
“A rate hike this week is not expected, but the ECB may provide further hints on the rate hike trajectory, alongside the refreshed staff projections matrix.”
“Potential for market to re-price higher rate hikes expectation may lend some support to the EUR.”
“Upside to the pair is at 1.0787 while support sits at 1.0627.”