Forex Top Team

With the remarks of President Knott, the euro buying reaction spreads

The euro was bought in response to the remarks of the De Nederlandsche Bank Governor Knott in the early part of London. “The 25bp rate hike in July is realistic, the ECB needs to normalize its policies, and data in the coming months show that inflation is widespread and cumulative, it does not rule out the possibility of a 50bp rate hike,” he said. ..

Eurodollar was bought from around 1.0475 to the 1.0528 level at once. Euroyen surged from around 135.50 to the 136.12 level at one point. The euro has also been repurchased against the pound.

Governor Knott is known as a hawk, but the market responded sensitively to mentioning a 50bp rate hike.

The EUR was supposed to have a heavy upside due to increasing tensions with Russia due to Finland & Sweden’s accession to NATO, but the situation is that there is a big buy in the statement of President Knott. It seems that VS Russia is also paying attention to rate hikes. With this, the sale of EURUSD has already stopped out.

More Insights