EURUSD daily chart June 27

Credit Agricole CIB Research discusses the EUR outlook and sees a scope for EUR/USD to stay supported on ECB increased hawkishness as of late.

"We continue to expect that the ECB will tighten its policy in coming months while continuing to do whatever it takes to shield the Eurozone periphery from the detrimental impact of that very tightening. To the extent that the ECB is able to close both the USD-EUR rate spread and the peripheral yield spread to Bunds – that historically have been the most statistically significant drivers of EUR/USD – this should make the EUR a more attractive safe haven and ultimately put a floor under EUR/USD," CACIB notes.

"Focus in the first half of this week will be on the ECB’s three-day central bank symposium that starts today in Sintra, Portugal...More evidence that the ECB is committed to containing the Eurozone inflation while shielding the EGB market, can boost the EUR’s safe-haven appeal and prop up EUR/USD at a time when growing recession fears remain the main FX market driver," CACIB adds.

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