Bank of America: The impact of the European Central Bank on the euro/cross pair will be more pronounced.

FXStreet 18th July News - The Bank of America expects that the decision of the European Central Bank will not have a significant impact on the euro, but the ECB’s continued cautious attitude towards sticky services inflation may bring moderate bullish risks to the euro. Compared to February, market pricing, the European Central Bank’s policy stance at the end of 2024 is expected to be tighter than other G10 peers (except the Reserve Bank of Australia), and at the same level as the Fed’s policy stance. Therefore, Bank of America expects the impact of the European Central Bank on the euro/cross pairs to be more pronounced, and holds a constructive view on the euro/Swiss franc, to some extent bullish on the euro/Canadian dollar, but the rebound of the euro against the pound and the Australian dollar may fade away.