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Analysts at Scotiabank explained that EUR/USD is moderately firmer on the session, though trading off slightly from earlier highs just above 1.17, following yesterday’s late-in-the-day report from Bloomberg suggesting that “some” ECB  policy makers  thought market pricing for a late 2019 rate hike was “too late”.  

Key Quotes:

“Markets were so priced largely because the ECB itself showed no urgency to tightening, suggesting at the last policy meeting that rate hikes were unlikely until after mid-2019.”

“The comments, reflecting the more hawkish camp among ECB  policy makers, prompted a modest repricing of rate hike risks and nudged the EUR up towards the upper end of its recent trading range, but no more.”

“German factory orders surged 2.6% in May (versus +1.1% expected). Eurozone Retail PMI edged slightly higher in Jun (51.8, from 51.7).”