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EUR/USD is likely to maintain support at the 1.0700 level

by Elena

ECB‘s high inflation forecasts offer little support

The euro found some support overnight after reports that new ECB staff forecasts to be released tomorrow suggest CPI will be above 3% next year, compared with expectations for 2.7%. This means that, based on these forecasts, the ECB is likely to be more hawkish and supportive of the euro.

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There were a lot of changes at Thursday’s meeting. However, the most important part should be a 25 basis point hike – which is priced at just 54% – and this factor should cause EUR/USD to hold support at 1.0700.

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