Today marks the final day of the Sintra summit, where notable figures such as ECB’s Lagarde, Luis de Guindos, Piero Cipollone, Philip Lane, and Klaas Knot will be sharing their insights. According to ING’s FX strategist Francesco Pesole, Eurozone inflation saw a slight decline in June, with the core measure remaining steady at 2.9%. This aligns with the cautious approach towards easing guidance expressed by Lagarde and other ECB members.
The summit will conclude with closing remarks from Lagarde and speeches from key ECB figures. Chief Economist Philip Lane reiterated Lagarde’s message of patience, emphasizing that the June data may not provide answers regarding services inflation. The eurozone’s economic calendar will be quieter in the latter part of the week, with only final PMI figures and May PPI numbers on the agenda. While a weaker USD may push EUR/USD above 1.0800, the likelihood of it reaching 1.0900 remains uncertain at this time.