ECB Pause Seen Limiting Euro Downside Against USD – BBH

Brown Brothers Harriman (BBH) analyst Elias Haddad anticipates the European Central Bank will hold its key rate at 2.25% at the upcoming meeting, following the 25 basis point hike delivered in June.

According to Haddad, the central bank is likely to maintain a data-dependent forward guidance without introducing new policy signals. This pause is expected to cap the euro's depreciation against the US dollar, as markets adjust to a less hawkish ECB outlook.