ECB Signals Rate Hike Expectations at Sintra Forum, Supporting EUR to 1.1500 by July

According to ING analyst Francesco Pesole, if European Central Bank policymakers maintain a rate hike outlook at the ECB Forum in Sintra, Portugal from Monday to Wednesday, it could provide support for the euro. ING expects a further rate hike in September. Pesole stated that hawkish signals from ECB speakers this week should help limit euro weakness despite pressure from U.S. dollar strength.

The euro rose 0.1% to 1.1399 on June 29. ING forecasts the euro will hold above 1.1300 and gradually recover toward 1.1500 in July.