Euro: ECB hawkish repricing with bond selloff – Deutsche Bank

The post Euro: Sideways trading outlook against US Dollar – Rabobank appeared on BitcoinEthereumNews.com. RaboResearch Global Economics & Markets discusses how Euro sentiment has cooled after optimism around Germany’s debt brake, with political risks and structural headwinds weighing on the currency. The bank notes EUR/USD is already priced for another ECB hike and expects sideways trading near current levels in the coming months, with only a modest upward bias further out. Euro sentiment cools after 2025 surge “While higher short-term interest rates are currency supportive, the market is already fully priced for another ECB rate hike this year, suggesting that one more policy move is unlikely to offer much support for the EUR. On balance, we expect EUR/USD to trade sideways close to current levels on a 1-to-3-month view.” “Irrespective of this, it is worth noting that the EUR was the second best performing G10 currency in Q2 2025 after the safe haven CHF. This highlights the part the

Geopolitical tensions and AI risks could prompt a long-term shift away from USD assets, impacting global capital flows and reserve strategies. The post Deutsche Bank warns geopolitics and AI are increasing risks to the US dollar appeared first on Crypto Briefing.

The ECB's rate hike and digital euro progress could reshape Europe's financial landscape, impacting stablecoin demand and regulatory dynamics. The post ECB hikes rates for the first time since 2023 as digital euro legislation advances appeared first on Crypto Briefing.

The post Euro: Early gains against US Dollar at risk on Fed story – ING appeared on BitcoinEthereumNews.com. Chris Turner at ING highlights that EUR/USD has held up despite higher Oil, as Euro swap rates outperformed US rates on expectations of an ECB hike in September. However, he argues the Fed narrative will dominate, with EUR/USD likely to surrender gains and fall below 1.14. ECB minutes and energy prices should keep September hike expectations alive. Resilience questioned as Fed dominates “On the eurozone calendar today is the release of the ECB minutes for the 11 June meeting. We assume this will be pitched as hawkish and, combined with higher energy prices, keep expectations alive for a follow-up hike at the September meeting. That is currently priced at +22bp by money markets.” “EUR/USD has held up remarkably well given the jump in oil prices yesterday. Yield spreads did narrow in favour of the euro, where euro swap rates rose around 7-8bp more than short-dated US rates on the

The post Equities: Stagflation hit and chip-sector divergence – Deutsche Bank appeared on BitcoinEthereumNews.com. Deutsche Bank strategists report that United States (US) equities weakened under a stagflationary backdrop. The S&P 500 fell with broad-based losses, while the Philly semiconductor index outperformed strongly. SK Hynix’s US ADR offering was heavily oversubscribed, and China may allow some domestic AI firms to buy Nvidia H200 chips, supporting chip stocks even as most S&P 500 industry groups declined. Broad losses, semis outperform “Given the stagflationary backdrop, this meant equities took a big hit on both sides of the Atlantic. So the S&P 500 fell -0.28%, with a broad-based decline that saw 78% of the index lose ground. Once again, the move in chip stocks was against the overall market as the Philly semiconductor index (+2.23%) outperformed.” “The outperformance was bolstered by two large news stories. First, SK Hynix’s US offering was more than seven times oversubscrib

The post Euro: Geopolitics and ECB repricing supports EUR – Scotiabank appeared on BitcoinEthereumNews.com. Scotiabank strategists Shaun Osborne and Eric Theoret note the Euro (EUR) is consolidating around the low 1.14s, with mixed G10 performance as markets reassess Oil’s impact on Euro area terms of trade and the European Central Bank’s (ECB) rate path. They highlight a notable repricing of ECB tightening to about 35 bps by December, supporting EUR via yield spreads, while near-term EUR/USD is seen confined between 1.1380 and 1.1480. Oil risk and ECB repricing “The EUR is quietly consolidating in the low-1.14s and entering Wednesday’s NA session unchanged vs. the USD. The EUR is also a mid-performer among the G10, in mixed overall trade with dispersion offering a break from the broad USD-driven movement that has characterized overall performance through much of this year.” “The latest resurgence in geopolitical risk presents a clear potential headwind for the EUR as we assess the ren

The post ECB’s Escrivá: Central bank to keep all options on a meeting-by-meeting basis appeared on BitcoinEthereumNews.com. European Central Bank (ECB) policymaker and Governor of the Bank of Spain, José Luis Escrivá, said on Wednesday that the central bank “will keep all options on the table and decide on a meeting-by-meeting basis.” Additional quotes If the recent decline in oil prices were to persist, the factors that had concerned policymakers would gradually ease. The rise in oil prices over recent months had started to be transmitted to other prices in the economy. Monetary policy would normally look through one-off energy price shocks, but we started to see indirect effects over recent months with rising services inflation, transport costs and food prices. We had to react by raising interest rates. The ECB should remain agile given the uncertainty. Market reaction As of writing, EUR/USD is defending 1.1400 following these comments, modestly flat on the day. Escrivá flags energy-

Rising oil prices threaten Europe's economic stability, impacting ECB policies and potentially influencing global crypto market dynamics. The post Euro bears return as surging oil prices test currency rebound appeared first on Crypto Briefing.