The Euro exhibited mixed performance against major currencies on Wednesday as markets weighed expectations of a hawkish European Central Bank (ECB) rate hike against a cautious Riksbank outlook. According to Investing.com Forex, Citi anticipates only limited Euro gains despite the prospect of a tighter ECB policy.
Nomura strategists, cited by FX Street, forecast the Riksbank will hold its policy rate steady through the remainder of 2026, with a single 25 basis point increase to 2.00% expected only in early 2027. Meanwhile, EUR/CAD traded around 1.6030 during European hours after two days of losses. The Euro also slipped 0.27% to about 178.50 yen, close to its 10-month low of 177.85 yen recorded the previous day.
ING’s Chris Turner described EUR/USD near 1.1600 as a mid-range level since April and expects the ECB’s upcoming rate hike to be dovish, unlikely to support further tightening priced into markets. For Japanese investors, these movements underscore the importance of monitoring ECB signals amid ongoing global monetary policy divergence.