Bank quotes reporter test with title fix - 1

Euro support builds as ECB hawkishness and geopolitics narrow EUR/USD upside

Strategists at Scotiabank note that the Euro “has been trading constructively over the past several weeks, supported by renewed hawkishness from the ECB that has been further compounded by the latest geopolitical developments.” They “anticipate continued support into the July 23rd ECB decision, as markets move to price in a 25bpt hike for September (w/ Sept currently priced at 20bpts),” and look for “a near-term range bound between 1.1400 and 1.1500.”

Analysts at ING similarly highlight that the recent re-pricing is “injecting new confidence into previously dwindling expectations for a September ECB hike,” but caution that “the path for EUR/USD to come out stronger from this re-escalation is quite narrow.” ING expects “stabilisation today – with markets potentially wanting to wait for weekend clarity – but risks are of a retest of 1.140.”