ING Analyst: ECB September Rate Hike Support EUR/USD, But Fed Rate Outlook Risks Fall Below 1.14

EURUSD0.02%
According to Chris Turner, senior analyst at ING, expectations of a European Central Bank rate hike in September are supporting the euro on July 9. While U.S.-Iran tensions drove oil prices higher on Wednesday, the euro remained resilient as yield differentials narrowed in favor of the euro—euro swap rates rose more than U.S. short-end rates. However, Turner noted that the Federal Reserve's rate hike outlook remains the more dominant theme, which could push EUR/USD below 1.14.
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