Early on Monday, the EUR/USD pair is experiencing relatively stable fluctuations, remaining above 1.0900 following a significant surge last week. Since there are no major data releases expected to impact the pair's performance, the only potential catalyst would be comments from officials of the European Central Bank (ECB). However, trading activity in the second half of the day is likely to be subdued due to the closure of the US stock and bond markets for the Juneteenth holiday.
Later today, speeches will be delivered by ECB Chief Economist Philip Lane, Governing Council member Isabelle Schnabel, and ECB Vice President Luis de Guindos. Market expectations lean towards the ECB implementing another 25 basis points (bps) increase in key rates in July. Such a policy move is widely anticipated, and investors are more interested in knowing whether the ECB will need to continue tightening its policy beyond July. Although it is unlikely, if officials express a willingness to raise rates in September, the Euro could gain strength.
In the coming days, FOMC Chairman Jerome Powell will testify before lawmakers on monetary policy decisions. The Federal Reserve (Fed) recently released its monetary policy report to Congress, highlighting a "considerable uncertainty" regarding the outlook for the policy rate. Currently, markets are pricing in a nearly 75% probability of a 25 bps Fed rate hike next month. Our analysis suggests that the price may experience a bearish impulse towards the previous support area.
Later today, speeches will be delivered by ECB Chief Economist Philip Lane, Governing Council member Isabelle Schnabel, and ECB Vice President Luis de Guindos. Market expectations lean towards the ECB implementing another 25 basis points (bps) increase in key rates in July. Such a policy move is widely anticipated, and investors are more interested in knowing whether the ECB will need to continue tightening its policy beyond July. Although it is unlikely, if officials express a willingness to raise rates in September, the Euro could gain strength.
In the coming days, FOMC Chairman Jerome Powell will testify before lawmakers on monetary policy decisions. The Federal Reserve (Fed) recently released its monetary policy report to Congress, highlighting a "considerable uncertainty" regarding the outlook for the policy rate. Currently, markets are pricing in a nearly 75% probability of a 25 bps Fed rate hike next month. Our analysis suggests that the price may experience a bearish impulse towards the previous support area.
