Money markets are becoming increasingly optimistic about a more aggressive European Central Bank (ECB) tomorrow after adding a few extra basis points yearly forecast. There has been much talk around a 50bps rate hike in July and rumors of a surprise hike tomorrow, I believe this to be premature and is highly unlikely to materialize. What we could see is a change in tone from the ECB post-announcement which has allowed the euro to remain relatively resilient against the U.S. dollar this week.
