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2026-07-17 14:28:12
[Euro Holds Firm Around 1.145, ECB Rate Hike Expectations Support Weekly Gain] ⑴ The euro held firm against the dollar at around 1.145, near its strongest level since June 19, and is poised for a weekly gain. Market expectations of further tightening by the European Central Bank continue to support the euro, while investors focus on escalating tensions in the Middle East following a new round of US strikes against Iranian targets. ⑵ The market has fully priced in a September rate hike by the ECB and expects another hike before spring 2027. However, recent comments from officials including Piero Cipollone and Martin Kocher have signaled caution, making a July action less likely. The dollar weakened this week as US producer prices unexpectedly fell in June and consumer prices recorded their first monthly decline since 2020. Weaker-than-expected inflation data dampened market expectations for further Fed rate hikes this year.
