ING analyst Chris Turner said the upcoming Fed policy meeting is likely to be
more important for EUR/USD than the ECB's Thursday rate decision. The ECB has
signaled further hikes and markets price a July move, but Turner markets said
have already priced an aggressive ECB tightening cycle and are reluctant to push
that view further, keeping EUR/USD below 1.16. Markets also expect the Fed to
hike later this year; unless the Fed rebuts that outlook at Wednesday's meeting,
the dollar should remain firm.
