The European Central Bank (ECB) policy decision came and went as expected—no change in rates and little in terms of forward guidance beyond reaffirming ‘data dependency’, Scotiabank’s chief FX strategist Shaun Osborne notes.
EUR sees support in the mid/upper 1.08s
“The usual post-meeting leaks around the tone of policy discussion indicated that ECB policymakers may see limited room for additional cuts and might only be able to reduce interest rates once more this year. Markets are still leaning towards the idea of two more cuts (45bps priced in for the remainder of 2024) but swaps and the Euro (EUR) will be sensitive to data that may make the hawks’ case for proceeding cautiously any stronger.”
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