EUR/USD rebounds to mid-range ahead of ECB minutes - BBH

EUR/USD bounced back toward the middle of its recent 1.1550-1.1740 range as markets await the ECB Account of the July meeting. With policymakers signaling that easing is essentially complete and inflation at target, the euro is finding support against a softer dollar backdrop, BBH FX analysts report.

Lagarde signals comfort with inflation at target

"EUR/USD recovered to the middle of this month's 1.1550-1.1740 range after probing the lower end yesterday. The ECB Account of the July 23-24 rate decision is up next. At that meeting, the ECB voted unanimously to keep the policy rate unchanged at 2.00% and signaled its pretty much done easing."

"The ECB statement noted that 'the economy has so far proven resilient overall in a challenging global environment.' Moreover, ECB President Christine Lagarde stressed that the ECB is in a good place with inflation at 2%, adding 'you could argue that we are on hold." Bottom line: the ECB's pause, and dovish Fed underpins the EUR/USD uptrend'."