ECB's de Guindos: A rate hike is possible in July, will depend on data

• No reason why APP purchases can't end in July
• Euro area inflation is close to peak, will slow in 2H 2022

That adds to the more hawkish remarks from Kazaks yesterday here. Money markets are now pricing in three 0.25% rate hikes by the ECB this year. The euro is getting a bit of a pop as a result with EUR/USD EUR/USD The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be Read this Term moving up from around 1.0858 to a high of 1.0888. Take note that there are large expiries around 1.0900-05 so that could cap any upside move.

Even though we are getting more hawkish undertones, it is still doubtful that the ECB will act more aggressively but we'll see if more policymakers will come out to prove that notion wrong.