EUR/USD rose by +1.20% in yesterday’s session. As the European Central Bank (ECB) is set to deliver a rate lift-off in July, economists at Commerzbank expect the shared currency to continue strengthening.

Keeping an eye on developments in Ukraine 

“Many observers will continue to consider the ECB as being too hesitant, but the fact that a lift-off is now very likely to happen in July and that the ECB seems willing to hike rates further after that is positive for EUR.”

“Of course, it remains important to keep an eye on developments in connection with the Ukraine war. However, if the situation does not deteriorate significantly EUR might benefit from the prospect of a more restrictive ECB monetary policy for some time.”