Euro Holds Near Mid-May High as Traders Assess ECB Rate Outlook
The euro held just above $1.165, near its highest level since mid-May, as investors assessed falling oil prices and the outlook for European Central Bank interest rates. Iran said it had resumed talks with Oman on managing the Strait of Hormuz, boosting hopes that the key waterway could reopen and ease disruptions to energy shipments. Meanwhile, Separately, ECB board member Isabel Schnabel said rates may need to rise further if the Middle East conflict persists, citing upside risks to inflation from the resilient euro-area economy. Money markets are pricing less than 40 bps of additional ECB tightening by year-end, with a September rate hike nearly fully priced in.
The euro held just above $1.165, near its highest level since mid-May, as investors assessed falling oil prices and the outlook for European Central Bank interest rates.
Iran said it had resumed talks with Oman on managing the Strait of Hormuz, boosting hopes that the key waterway could reopen and ease disruptions to energy shipments.
Meanwhile, Separately, ECB board member Isabel Schnabel said rates may need to rise further if the Middle East conflict persists, citing upside risks to inflation from the resilient euro-area economy.
Money markets are pricing less than 40 bps of additional ECB tightening by year-end, with a September rate hike nearly fully priced in.