ECB Tightens But EUR/USD Refuses to Budge

The European Central Bank (ECB) has maintained its hawkish stance, expecting further interest-rate increases. However, this tightening hasn't translated to a significant move in the EUR/USD pair, which remains near July's low at around 1.1371.

The Euro has fallen in six of the past eight completed sessions and is down about 0.4% for July after retreating from its monthly high near 1.1481 to within one cent of June's 1.1325 low.

ING and Nordea expect the ECB to maintain a hawkish bias, but the market isn't responding with a corresponding move in EUR/USD.