MUFG: Euro Support May Fade Against USD as ECB Rate Hike Priced In
MUFG analyst Derek Halpenny notes that the ECB's latest communication supports a likely September rate hike, now almost fully priced. However, he warns that Euro support may fade due to rising energy costs.
EURUSD
MUFG's Derek Halpenny commented on the Euro outlook, stating that the European Central Bank's recent communication reinforces expectations for a September rate hike, which is now almost fully priced in by markets.
Despite this, Halpenny cautioned that the Euro's support could diminish gradually against the US Dollar. He highlighted energy costs as a key factor that may weigh on the single currency going forward.
Source: FXStreet Forex News