Euro supported by ECB’s hawkish stance
The European Central Bank’s Sintra forum is expected to maintain a broadly hawkish stance, supporting the euro against the US dollar.
The ECB’s macro team forecasts slightly above-consensus inflation at 3.1% headline and 2.6% core, which would lead to another ECB hike in September.
The euro faces downside risks from any new USD bull revamp, but a broadly hawkish tone in Sintra can offer some help on the margin, with a gradual recovery toward 1.150 in July.