Schnabel's Upbeat Tone Boosts Euro Against Dollar

Eurozone data has been consistently beating expectations, and the latest news is that growth risks are no longer to the downside, but possibly to the upside. According to Isabel Schnabel, an ECB official, this means that a rate hike of 25 basis points to 2.50% in September is becoming increasingly likely.

This upbeat tone from Schnabel supports expectations for another rate hike early next year. As a result, the euro could strengthen against the US dollar, with support at 1.1650/60 expected to hold and potentially move towards the 1.1700/1710 area.