ECB's Nagel Keeps July Hike Option Open as EUR/USD Holds Near 1.1518

EUR/USD slipped 0.15% to 1.1518 after the ECB delivered its first 25 bp rate hike in nearly three years on June 11, lifting the deposit rate to 2.25%. The move was fully priced in, producing little euro support as strong US PPI data and Middle East geopolitical tensions bolstered the dollar. Pre-hike optimism had lifted the pair toward 1.1550 on June 9 amid bets for further ECB tightening. On June 12, ECB's Nagel refused to rule out an additional July hike, citing the 'strong and persistent' energy shock from the Middle East that is spreading into broader inflation.