June meeting unlikely to be the trigger for a sustained Euro rally – ING

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Economists at ING discuss European Central Bank (ECB) Monetary Policy Decision and its implications for the EUR/USD pair.

Running out of hawkish arguments

We expect the ECB to deliver a 25 bps rate hike this week and signal more to come. 

Rates markets are already priced for this outcome, and softening economic data dents the ECB’s ability to push rates above their 2023 top. 

The impact on EUR/USD may be short-lived, with Dollar rates still likely to be the primary driver of any sustained trend in the pair.

Source: ING