EUR dips on ECB doubts on projections for H2 growth rebound
Hitting the wires were reports that several policymakers at the ECB doubt the projections for a rebound in growth in the second half of the year. They are also sceptical of the accuracy of the metrics used to make these projections, citing that they believe the calculations are 'too optimistic'.
This sent EUR/USD tripping back under 1.1300, where the spot rate eventually found support at 1.1280. This could yet be tested again once North American traders come in as we expect intraday sellers will not be sitting in wait ahead of 1.1300.
The crosses have all followed suit, especially EUR/JPY, which is now eyeing a move on the low 126.00's as this will also affect risk sentiment in the market and return a bid for the JPY.
EUR/CHF and EUR/GBP may be better protected, though here also we have seen modest losses, though the USD and JPY will be outright beneficiaries of this latest news.