⚡ Euro: Range trading persists against US Dollar as ECB turns hawkish – DBS

**BREAKING: Euro Stays Range-Bound Against Dollar Ahead of Critical Central Bank Meetings**

The Euro continues trading within a tight range against the US Dollar as markets await pivotal policy decisions from both the Federal Reserve and European Central Bank in June, according to DBS Group Research analyst Philip Wee. The ECB is widely anticipated to implement a 25 basis point rate hike described as an “insurance” measure while simultaneously revising its inflation forecasts upward, signaling a more hawkish stance than previously expected.

This shift in ECB policy positioning comes as traders attempt to gauge the divergence between European and American monetary policy trajectories. The anticipated rate increase would mark another step in the ECB’s campaign to combat persistent inflation in the eurozone. Market participants are now balancing expectations between Fed policy decisions and the ECB’s increasingly aggressive approach to price stability.

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FXnCO Insight

** Traders should prepare for increased EUR/USD volatility around the June central bank meetings, with potential breakout opportunities depending on the relative hawkishness of policy guidance from both institutions.

Source: FXStreet