ECB Base Case: One More Hike Despite Softening Data – OCBC
OCBC strategists say the ECB's June minutes justified the latest rate hike while keeping flexibility, but since then oil prices have fallen and CPI data surprised, yet they still see one more hike as base case.
EURUSD
According to OCBC strategists Wong and Sim, the European Central Bank's June meeting minutes confirmed the rationale for the latest rate hike while leaving room for future adjustments. Since the meeting, crude oil prices have dropped significantly and June CPI figures surprised to the downside, signaling softer inflation pressures. Nevertheless, the strategists maintain that one additional rate increase remains the baseline scenario for the ECB.
Source: FXStreet Forex News