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Euro Price Forecast: EUR/USD Gearing Up for ECB Rate Decision

June 6, 2022

Via: DailyFX

The euro opened stronger on Monday despite rising tensions between Russia and Ukraine after the Asian session fed off the risk on mood post-Chinese PMI. Although the economy remains in a contractionary state, both composite and services improved on the previous print.

Euro traders will be focused on the ECB’s rate announcement later this week with GDP numbers serving as a precursor to eurozone strength. Money markets are pricing in roughly 133bps for 2022 with the upcoming rate decision expected to be left on hold. The question around rising inflation will likely be brought up in the press conference should rates remain the same with talk around a possible 50bps hike in July.

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