ING with a preview of the ECB policy decision later today
The firm says that the meeting should have a fairly limited impact on the euro, with no new measures expected to be announced following the PEPP buff in June. Adding that "the meeting should be more about testing Lagarde's communication skills" instead.
Further out though, the firm retains a view for a higher EUR/USD as they expect the pair to break above 1.15 this summer and moving towards 1.20 by year-end:
"We continue to see EUR/USD breaking the 1.15 level this summer and moving towards 1.20 by year-end as the expected soft US dollar environment pushes the cross higher. The ECB's measures, which have reduced the risk premium for the euro, should facilitate this move but the weak dollar environment should be the prime catalyst behind the appreciation of the cross."
