ECB: Pushback on the market’s pricing for cuts will drive EUR/USD towards 1.10 – Scotiabank

EUR/USD firmer ahead of ECB. Economists at Scotiabank analyze the pair’s outlook ahead of the 

Caution on rate outlook will be supportive

Refreshed staff forecasts for inflation and growth will give policymakers a little more perspective on the rate outlook but it remains to be seen whether the ECB’s leadership is willing to mimic the Fed and endorse market expectations of an early start to the easing cycle.

Pushback on the market’s pricing for cuts will drive EUR towards 1.10. 

See – ECB Preview: Forecasts from 10 major banks, more dovish direction as inflation trends to the downside