Talking Points:
- The ECB posed no changes to policy and made only minor alterations to the accompanying statement at this morning’s ECB rate decision, and this puts the focus squarely on next week’s inflation prints out of the Euro-Zone for clues to the next directional movement in the single currency.
- Inflation has been on a strong trend lately, coming in at 1.9% in the month of May and this was followed by a 2% print in June. With inflation already at the ECB’s target, will they be able to stay loose and passive with rates ‘at least through the summer of 2019?’ Last year saw a build of strength in EUR/USD[1] on the basis of data pushing the ECB into a more-hawkish stance – will the second-half of 2018 see the return of the same theme?
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EUR/USD Holds at Resistance as ECB Makes No Material Changes to Policy, Statement
This morning’s ECB rate decision has been without significant fanfare[8]. The bank reiterated their stance that they’re anticipating keeping rates at current levels ‘at least through summer of 2019,’ while also confirming
