Vladimir Miklashevsky, senior economist at Danske Bank, notes that the EUR/USD rose when ECB failed to satisfy a dovish priced market two weeks ago as ECB needs a weaker EUR and Draghi could try to right the market, when he opens the annual Sintra conference today, or more likely tomorrow morning in his introductory remarks.
“At this stage we do not think words will be able to move EUR/USD – the market is looking for actions. On this regard, the FOMC meeting Wednesday will be the more important monetary policy event for EUR/USD this week as we look for Fed to prepare the market for a July cut. In turn this should pave the way for EUR/USD to move to 1.15 in 3M and outperform FX forwards.”
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