Euro Could Rise Modestly on Fed-ECB Divergence

Dow Jones
1 hour ago

1428 GMT - The euro could rise slightly later this year if the European Central Bank raises interest rates while the Federal Reserve keeps rates unchanged, strategists at UniCredit's The Investment Institute say in a note. "Our baseline scenario, which still points to a reduction of the war-driven risk premium, another rate hike by the ECB in September versus a Fed still on hold remains in favor of a modest euro-dollar rebound." However, any euro gains are likely to be capped at $1.17, they say. The euro is last marginally higher on the day at $1.1372. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

July 27, 2026 10:28 ET (14:28 GMT)

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