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Euro rises against the dollar ahead of ECB policy decision

EUR/USD was up 0.15% near 1.1430 before the ECB announcement, following expectations for rates to stay steady after the prior June hike.

Reported · Written up by our desk · Major Pairs

The euro strengthened versus the US dollar in early European trading, with EUR/USD up 0.15% to around 1.1430. FXStreet attributed the move to investors positioning ahead of the European Central Bank’s policy announcement scheduled for 12:15 GMT. The ECB is widely expected to keep policy rates steady after a 25 basis point hike in its June meeting. Market focus is on what the central bank says in its monetary policy statement and in remarks from ECB President Christine Lagarde, particularly regarding the inflation outlook and whether risks of second-round inflation effects in the euro zone are warranted. FXStreet also noted that, according to Reuters, traders are pricing in two additional ECB interest rate hikes later this year. The report cited comments from ECB policymaker and Bank of Italy Governor Fabio Panetta, who said the central bank aims to keep inflation expectations anchored and limit indirect and second-round effects of shocks.

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Latest closeEUR/USD 1.141 ▼0.0%

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