The ECB is expected to raise interest rates by 25 basis points

In the Asian session on Monday (June 12), the EUR/USD fell back from its highs, temporarily reporting at 1.0746, a drop of 0.02%. Economist Silvia Ardagna said the European Central Bank is expected to confirm at its monetary policy meeting on June 15 that the reinvestment of maturing bonds under the asset purchase program will end in July.

The latest from the European Central Bank:

However, forward guidance on the Emergency Pandemic Bond Purchase Program (PEPP) is expected to remain unchanged, with maturing bonds to be reinvested in a flexible manner until at least the end of 2024. Also, like the rest of the market, Ardagna expects the ECB to hike rates by 25 basis points at this meeting, taking the deposit rate to 3.50%.