EUR/USD Holding ECB & IJC-Driven Bid

Yesterday’s hawkish ECB outcome, coupled with the U.S. weekly jobless claims data, propelled EUR/USD to the highest levels seen since 11 May, with gains consolidated overnight as the cross sits little changed at $1.0945.

• The higher for longer rates dynamic is becoming a focal point when it comes to the ECB, with a July hike deemed likely by President Lagarde, as she stressed the Bank’s “persistence” when it comes to fighting inflation.
• On that front, the latest BBG sources piece suggested that “European Central Bank officials expect a tough debate next month on whether another interest-rate hike at the following meeting, in September, will be necessary.”
• Meanwhile, RTRS sources noted that “European Central Bank policymakers began this week a debate on evening out the "corridor" between the ECB's three interest rates, in a first step towards an era in which money is scarcer.”
• Final CPI data for May & Q1 Labour costs present the headline Eurozone data releases ahead of the weekend. More interest will be placed on the raft of ECB speakers that follow yesterday’s decision, with Villeroy, Rehn, Centeno, Holzmann & Muller all due to cross.