Schnabel's Optimism Supports Euro Against USD

According to Chris Turner at ING, Eurozone data has been surprising positively, and the economy's resilience in the face of rising energy prices is a significant factor. The ECB's Isabel Schnabel recently suggested that growth risks might be shifting to the upside, which could lead to a 25bp rate hike to 2.50% in September.

This news supports expectations for another rate hike next year. As a result, Turner expects EUR/USD to hold its support at 1.1650/60 and move towards the 1.1700/1710 area.