Euro got a lift from ECB President Lagarde today with EURUSD jumping above 1.0650 - the highest level in almost a month. Lagarde joined other ECB members and strongly hinted that interest rates in the euro area may begin to rise at a meeting in July. She even went on to say that the ECB may be in position to end negative interest rates regime this September. This points to at least 50 basis points of rate hikes by the end of Q3 2022. As rate hike at June meeting is rather improbable and there are only 3 meetings left until end-Q3 2022, Lagarde's comments point to 25 basis point rate hikes at both July and September meetings.
EURUSD rallied following Lagarde's comments on rate hikes. The main currency pair jumped above early-May high in the 1.0640 area and is trading at the highest level since April 26, 2022. Source: xStation5
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