Danske Research discusses its expectations for next week's ECB July policy meeting.
"At next week’s ECB policy meeting we expect a repetition of recent comments from various governing council members, thereby striking a cautiously optimistic tone compared to the June projections," Danske notes.
"For spot FX, the direction and stance of the ECB and euro area fiscal politics are, in our view, quite well priced and communicated (though to a lesser extent when it comes to the outcome for Brexit). In turn, it will be the extent and speed of the global recovery that sets the tone in EUR/USD. We remain constructive and expect broad USD to decline over the coming months and our 3M forecast is 1.15," Danske adds.