Euro: Firms against US Dollar as ECB hike in focus – Danske Bank
Danske Research Team expects the European Central Bank (ECB) to raise its deposit rate by 25bp to 2.50%, in line with consensus and market pricing, while President Lagarde is expected to retain full optionality on future moves.
Key firms are wary of the US dollar amid speculation of a European Central Bank (ECB) rate hike, as the bank is expected to raise its deposit rate by 25 basis points to 2.50%. This move aligns with market consensus and pricing. However, ECB President Lagarde is expected to retain full discretion over future rate adjustments, limiting market reactions.
Meanwhile, US Treasury yields climbed after the announcement of a $6 billion long-end bond buyback operation, with markets also anticipating US Producer Price Index (PPI) data. In the eurozone, the ECB will unveil its deposit rate.
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