NBC: ECB Hawkishness Fails to Support Euro as Spreads Cap Gains
National Bank of Canada strategists note that the euro fell toward 1.13 in June despite a more hawkish ECB, indicating that EUR/USD remains driven by relative spreads.
Strategists at National Bank of Canada (NBC) highlight that the euro declined to near the 1.13 level in June, even as the European Central Bank adopted a more hawkish stance. This price action underscores that EUR/USD continues to be influenced by relative yield spreads rather than central bank rhetoric alone.
The analysts, Stéfane Marion and Kyle Dahms, suggest that the limited impact of ECB hawkishness reflects broader market dynamics where spreads between European and US bond yields remain a key driver. The euro's weakness persists despite policy tightening signals from the ECB.
Source: FXStreet Forex News