EUR/USD: Last day in Sintra – ING

Today is the last day of the Sintra summit, which will include comments by ECB’s Lagarde, Luis de Guindos, Piero Cipollone, Philip Lane and Klaas Knot, ING’s FX strategist Francesco Pesole notes.

EUR/USD has little chance to rise to 1.0900

“Eurozone inflation declined in line with expectations in June (from 2.6% to 2.5%), but the core measure was unchanged at 2.9%, which endorses the widely reiterated caution on easing guidance by Christine Lagarde and other ECB members.”

“Today is the last day of the Sintra summit, which will include some closing comments by Lagarde, as well as speeches by the ECB’s Luis de Guindos, Piero Cipollone, Philip Lane and Klaas Knot. Chief Economist Philip Lane backed Lagarde’s message of patience yesterday, adding that June data would not answer questions on services inflation.”

“The calendar in the eurozone turns much quieter in the second half of the week, and today it only includes final PMI figures and May PPI numbers. While a softer USD could drive EUR/USD above 1.0800, we doubt there is enough steam to rise to 1.0900 for now.”