ECB’s Vujcic: As prices ease, 4% rates will be more restrictive

ECBs Vujcic is on the wires saying:

• As prices ease, the 4% rate will be more restrictive
• If outlook holds won’t need any more rate hike’s
• Latest hike puts us in a better position

The EURUSD is trading at 1.0634. The low price today reached 1.0616 which was 6 pips short of the 38.2% retracement of the move up from the September 2022 low. That level is a key level going forward for the EURUSD and buyers and sellers.

The ECB raise rates by 25 basis points last week to 4.5% from 4.25%. Today, the Swiss National Bank and Bank of England decided to keep rates unchanged at 1.75% and 5.25% respectively. The expectation was for the Swiss National Bank to raise rates by 25 basis points. The Bank of England decision was more of a tossup.

Yesterday the US Federal Reserve Rates unchanged but continue to see one more tightening between now and the end of the year. They also raise their projection for end of year 2024 fed funds target to 5.1% from 4.6% in June.