Open account

Euro rises as report says the ECB very likely to hike in June

The euro strengthened to intraday highs after Reuters cited ECB sources saying a rate hike in June is “very likely” and that policymakers broadly agree, with some already pushing for a move. The report said officials expect at least two hikes unless the Iran war eases and Brent oil falls sharply. Markets interpreted the comments as a signal of continued ECB tightening, boosting EUR/USD on the prospect of earlier and possibly larger rate increases. The story highlights geopolitical and oil-price risks that could alter the tightening path.

Category

EUR/USD

Sentiment

Bullish

Event

Policy statement

Reading time

1 min