Karamanis: The expectation of the European Central Bank raising interest rates has been digested by the market

Forex strategist Karamanis stated that Euro options show traders expect limited impact from today's meeting of the European Central Bank, as interest rate hikes have been fully digested by the market. If officials suggest that interest rates will continue to rise in July instead of being suspended until September (with a probability of less than 0.5 in the swap market pricing), the euro will fluctuate. The foreign exchange market will only fluctuate if the pricing of the three interest rate hikes before the end of the year is substantially challenged. It is expected that Lagarde will only reiterate that future decisions rely on data and will not provide clear guidance.