The Euro appears to be gaining some traction against the Greenback of late. The 1.0700 handle however has proved stubborn with EURUSD unable to maintain gains once crossing the threshold. Markets continue to remain optimistic that the Fed are done with rate hikes despite mixed messages from Fed Policymakers.
This morning brought the release of the ECB Economic Bulletin which weighed slightly on the Euro sending EURUSD below the 1.0700 handle. There was not a lot that surprised here with the key takeaways being that the economy is likely to remain weak for the remainder of 2023. The ECB further elaborated that subdued foreign demand and tighter financing conditions are increasingly weighing on investment and consumer spending.