EUR/USD extended its weekly rally, reaching its highest level since May 11 at 1.0962 on Friday before retreating modestly. Hawkish European Central Bank (ECB) rhetoric allows the Euro to outperform its rivals, but the technical outlook points to overbought conditions in the near term.
The ECB raised its key interest rates by 25 basis points (bps) in June as expected. The policy statement showed that Eurosystem staff revised core inflation projections for 2023 and 2024 higher. In the post-meeting news conference, ECB President Christine Lagarde all but confirmed one more 25 bps hike at the next meeting.
f EUR/USD manages to stabilize above 1.0940 (static level), it could target 1.1000 (psychological level) and 1.1050 (beginning point of the latest downtrend).
The ECB raised its key interest rates by 25 basis points (bps) in June as expected. The policy statement showed that Eurosystem staff revised core inflation projections for 2023 and 2024 higher. In the post-meeting news conference, ECB President Christine Lagarde all but confirmed one more 25 bps hike at the next meeting.
f EUR/USD manages to stabilize above 1.0940 (static level), it could target 1.1000 (psychological level) and 1.1050 (beginning point of the latest downtrend).