EUR/USD rebounds to mid-range ahead of ECB minutes – BBH

EUR/USD bounced back toward the middle of its recent 1.1550–1.1740 range as markets await the ECB Account of the July meeting. With policymakers signaling that easing is essentially complete and inflation at target, the euro is finding support against a softer dollar backdrop, BBH FX analysts report.

Lagarde signals comfort with inflation at target

"EUR/USD recovered to the middle of this month’s 1.1550-1.1740 range after probing the lower end yesterday. The ECB Account of the July 23-24 rate decision is up next. At that meeting, the ECB voted unanimously to keep the policy rate unchanged at 2.00% and signaled its pretty much done easing."

"The ECB statement noted that 'the economy has so far proven resilient overall in a challenging global environment.' Moreover, ECB President Christine Lagarde stressed that the ECB is in a good place with inflation at 2%, adding 'you could argue that we are on hold.” Bottom line: the ECB’s pause, and dovish Fed underpins the EUR/USD uptrend'."