While easing inflation should build a case for the doves, ECB communication has not seen drastic changes as we head into next week’s policy announcement. 

Yesterday, President Christine Lagarde reiterated her call for more tightening, and her hawkish tone is probably a key factor keeping markets attached to the 40-45 bps pricing for the July meeting. 

We have other speakers to keep an eye on today. Barring major dovish remarks, and unless a BoC hike has a positive spill-over on the Dollar, we feel EUR/USD can remain anchored to 1.0700 for now.