The euro-dollar ratio continues to move away from par, climbing beyond $ 1.05 against the greenback. Dollar buys have come to a halt for a few days (apart from the positive parenthesis of the eve), in tandem with the renewed fears of a recession in the United States.
In recent days, the hawkish statements of the ECB by Christine Lagarde have also been highlighted. It was in particular Klaas Knot, the governor of the Dutch central bank and a member of the Governing Council of the central bank, who gave a bullish push to the single currency, a victim since the beginning of the war in Ukraine of concerns about the consequences of the conflict on the economy of the ‘Europe, particularly exposed to Russia.
Knot stressed the possibility of a 50bp rate hike in July: it is the first time that an ECB exponent has hypothesized such an aggressive change.
The euro in recent days had updated the 20-year lows against the greenback.
Money markets are pricing in an even more aggressive ECB, now ready to raise rates: the predicted hike is 105 basis points, up from 95 bps in Tuesday’s session, before Knot talked about the possibility of a 50 basis point tightening at the meeting of the ECB in July.
In the past few hours, the Dollar index fell 0.3% to 103.5 after rising 0.55% on the eve, when it broke the previous three consecutive sessions in the red.
The euro is up 0.50% to around $ 1.0517.