Euro May Rebound Toward 1.16 Ahead Of ECB Meeting, Analyst Says

An analyst said the May CPI report avoided the worst-case scenario of the economy overheating more than expected, which could ease yields in the short term ahead of next week’s Federal Reserve decision and may weaken the U.S. dollar. According to Jin10, analyst Childe-Freeman said this could give euro-dollar bulls a brief opportunity, with the pair expected to recover toward the 1.16 level ahead of tomorrow’s European Central Bank meeting. Childe-Freeman added that an ECB rate hike tomorrow appeared all but certain, but cautioned that rate increases alone—especially against a backdrop of slowing growth—might not support the euro over the longer term.