The eurozone economy faces a summer of energy unrest And, with the Nord Stream pipeline shut down for maintenance from July 11 to July 21, the temperature may rise even higher. A sustained break below parity appears to be a week awayaccording to economists at Westpac.
The European Central Bank will begin the process of normalizing its monetary policy
“Growth forecasts will also have been lowered substantially. And depending on whether or not the Nord Stream pipeline is back to full capacity on the same day as the ECB meeting, they could be downgraded further.”
“Given the recent spate of unscheduled 100 basis point moves in central banks, it is increasingly likely that the ECB will begin the process of normalizing its monetary policy with a series of 50 basis point moves, instead of an initial move of 25 basis points. However, this will pale in comparison to what the Fed will do next week with a likely 100 basis point move on July 28.”
“With the key level of 1.0340 well broken, a sustained break below parity appears to be a week or so away“.
Source: Fx Street
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