The euro and the USD pair have pushed higher. Economists as however spotted a limited tailwind for the euro.
According to reports by Scotiabank, markets are already positioned for a hawkish European Central Bank (ECB). The shared currency is also said to be unlikely to enjoy further gains.
The report reads, ”With markets already positioned for a more aggressive hiking schedule for the ECB, we spot limited immediate tailwinds for the EUR – particularly as a big hike is still two months away.”
“Strong PMI data out on Thursday could give the EUR a near-term push to extend its recovery since mid-May”.
Meanwhile, the EUR/USD has gone into a consolidation phase near 1.0550. This was after it climbed toward 1.0600 earlier in the day.
With Wall Street’s main indexes posting strong gains after the opening bell, the dollar is having a difficult time finding demand as a safe haven.