As markets are still uncertain whether the European Central Bank (ECB) will hike interest rates in July, economists at Commerzbank expect the EUR/USD pair to hover around the 1.05-1.06 area.

EUR/USD in its comfort zone?

“A certain degree of scepticism as to whether the ECB will dare implement a lift-off in July is no doubt still justified, in particular, if economic concerns rise.”

“As long as there is no new level of escalation as far as sanctions and counter-sanctions in connection with the Ukraine war are concerned and while, on the other hand, there is no sufficient certainty yet as to whether the ECB really will hike interest rates EUR/USD is likely to be in its comfort zone at current levels around 1.05-1.06 for the time being.”