A 'what to expect' for EUR/USD on a 75bp European Central Bank rate hike - ECB preview

The European Central Bank European Central Bank The European Central Bank (ECB) represents the central banking entity in the Eurozone that oversees monetary policy for the bloc. As a growing geographic and economic region, the eurozone now includes 19 countries, which rely on the euro as their national currency.The eurozone presently consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.In terms of monetary The European Central Bank (ECB) represents the central banking entity in the Eurozone that oversees monetary policy for the bloc. As a growing geographic and economic region, the eurozone now includes 19 countries, which rely on the euro as their national currency.The eurozone presently consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.In terms of monetary Read this Term policy meeting is today, statement deu at 1215 GMT with ECB President Lagarde's press conference following at 1245 GMT.

Earlier:

• More on Goldman Sachs forecasting a 75bp rate hike from ECB
• BNP Paribas expects the ECB to raise rates by 75 bps
• Poll: Economists almost evenly-divided on 75 bps hike from the ECB
• The ECB is facing internal disarray as the hawks push back
• Preview: ECB hiking cycle to be less sensitive to recession than thought -- 75 bps coming
• Preview: ECB policy announcement due Thursday 8th September 2022
• TD: Base case is for ECB 50bps hike; Fade EUR/USD rallies on 75bps hike

This now, a snippet from Barcalsys via eFX.

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• "The markets are pricing a 68bp hike at this week's meeting, 123bp by the October meeting and 174bp by year-end, cumulatively. We have also changed our ECB call and are now forecasting a 75bp hike at this week's meeting, followed by 50bp and 25bp hikes in October and December, respectively, bringing the depo rate to 150bp by year-end.
• We also expect that President Lagarde could indicate during the press conference that a discussion on the end of reinvesting proceeds of the APP portfolio could take place in coming meetings, signaling another hawkish normalisation step," Barclays notes.
• "As the markets are not fully pricing 75bp at September's meeting, such hawkish results could push EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term higher in the short term, but the sanguine economic forecasts for the euro area and ongoing energy concerns should keep the EUR under pressure in the medium term. If the ECB underdelivers, for example if it hikes by 50bp, the implication for the EUR could be a lot different and EUR/USD could test the lows again," Barclays adds.