ING analysts expect ECB officials at Sintra to support market expectations for a 2024 rate increase amid steady Euro outlook.
European Central Bank President Christine Lagarde’s measured remarks at Sintra suggest no radical shift in policy communication. She noted the ECB response need not be as forceful as in 2022-2023 but acknowledged economic resilience, reinforcing expectations for another rate hike this year.
Market pricing for a 2024 hike remains intact, with ING anticipating other ECB speakers this week to validate this view. Recent eurozone sentiment data showed easing inflationary pressures, though this has not altered rate expectations significantly.
EUR/USD is expected to stabilize around or above 1.140, avoiding last week’s lows, despite downside risks from upcoming US data and Fed commentary.