{
  "id": 3504309,
  "title": "Euro: ECB tightening outlook offers support against US Dollar - BNY",
  "url": "https://urgent.news/2026/08/26/euro-ecb-tightening-outlook-offers-support-against-us-dollar-bny",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T11:40:17.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-ecb-tightening-outlook-offers-support-against-us-dollar-bny-202608261140"
  },
  "original_language": "en",
  "account": "BNY's Geoff Yu points out that ECB Executive Board member Isabel Schnabel anticipates additional rate hikes, citing persistent euro area inflation risks and robust growth. Schnabel warns that postponing wage adjustments could leave the ECB out of step, supporting the euro amid the expected inflation staying above 2% for a prolonged period. This is primarily due to high energy costs, like gas prices and low storage levels. Schnabel cautioned that waiting for wage effects to trickle in would leave the ECB lagging and might necessitate more aggressive tightening. She highlighted supportive fiscal measures, increased defense spending, AI investments, and improved sentiment indicators as reasons for optimism about the growth outlook. The precise amount of further tightening depends on forthcoming data. On Wednesday, the GBP/USD pair trades with a bearish outlook below 1.3650, while EUR/USD hovers around 1.1670, alternating between gains and losses. The euro's fluctuation comes after modest gains in the US Dollar due to July PCE data and a Q2 GDP revision. Gold prices dip 0.75% to around $4,620, correcting after a three-month high of $4,697, as investors become cautious ahead of July PCE data and Federal Reserve Chairman Kevin Warsh's remarks at the Jackson Hole Symposium. Bitcoin trades green above $78,000 but struggles to surpass $80,000, with institutional demand increasing and BlackRock's tax-deferred Bitcoin-to-ETF swap volume reaching $5 billion. The main market event this week is Nvidia's earnings report, expected to surpass $92 billion in revenues and $2.09 in earnings per share.",
  "summary": "BNY's Geoff Yu highlights that European Central Bank (ECB) Executive Board member Isabel Schnabel sees further rate hikes as necessary, with Euro area inflation risks still tilted to the upside and growth more resilient than expected.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Japanese Yen: Range-bound trading outlook against US Dollar – UOB",
        "url": "https://urgent.news/2026/08/26/japanese-yen-range-bound-trading-outlook-against-us-dollar-uob",
        "published": "2026-08-26T08:04:35.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}