Stick to the easing-cycle, and the zero-interest rate policy (ZIRP) in Europe may continue to drag on EUR/USD especially as the Federal Open Market Committee (FOMC) looks to implement higher borrowing-costs over the coming months. Treasury Secretary Steven Mnuchin pledges to implement tougher sanctions against the country, and the geopolitical risks surrounding the monetary union may push the European Central Bank (ECB) to further support the economy as ‘ uncertainties related to global factors, notably the threat of p rotectionism, remain prominent.’ In turn, the ECB’s account of the July meeting may highlight a dovish forward-guidance for monetary policy as President Mario Draghi & Co.
The may continue to impact the near-term outlook for EUR/USD as U.S. President Donald Trump tweets that ‘m oney is pouring into our cherished DOLLAR like rarely before,’ but fresh comments from Federal Reserve officials may rattle the recent rebound in the exchange rate as the central bank appears to be on course to implement higher borrowing-costs over the coming months. Euro Talking Points pares the sharp decline from earlier this month even as U.S. Currency Strategist for To c ontact Ilya, use the comments section below or on Twitter.
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