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May 17 - 10:55 PM

EUR/USD - Stubborn Inflation Fuels Hawkish ECB Expectations

By Andrew M Spencer  —  May 17 - 08:55 PM
  • Steady after closing down 0.2%, with a broadly firmer U.S. dollar +0.3%

  • Market has turned more hawkish on ECB June rate hike expectations

  • ECBWATCH prices a 25pt June hike to 3.5% at 83.1% from 92.5 early Tuesday

  • A 50 pt June hike to 3.75% currently has a 15.9% chance from zero Tuesday

  • Charts; 21-day Bollinger bands expand while momentum studies conflict

  • 5, 10 & 21-DMAs fall, a negative trending setup remains in play

  • 1.0806, 50% of the 2023 rise held yesterday, remains initial support

  • 1.0849 NY high, then yesterday's 1.0873 Asian top are the first resistance

    For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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