Euro Underperformance Attributed to Position-Squaring, EUR/USD Most Overbought Pair in G10 - ING 📉💶

ING notes that the recent underperformance of the euro could be due to some position-squaring. According to the latest CFTC positioning data, EUR/USD is the most overbought pair in G10, with net-long positions reaching 22% of open interest, the highest since early 2021.

ECB Hawks Foresee Rate Hikes Beyond July, Core Inflation a Key Leverage Point -  🦅📈

ECB hawks have been more vocal following the recent ECB meeting. Council member Martins Kazaks suggests that rate hikes might not end in July, while Isabel Schnabel asserts that rates will be raised determinedly until core inflation shows sustained signs of falling. The focus on headline versus core inflation could be a crucial leverage point for hawkish rhetoric within the ECB.