Dutch International: Euro potentially outperforming low-yield currencies due to bets on European Central Bank raising interest rates.

Francesco Pesole of the Netherlands International Group stated in a report that, with expectations of a rate hike by the European Central Bank, low-yield currencies such as the Euro against the Japanese Yen and Swiss Franc may perform well. Data from the London Stock Exchange Group shows that, despite a decrease in bets on a rate hike on April 30 since the ceasefire agreement between the US and Iran, market prices already reflect expectations of a 58 basis point rate hike by the end of the year. Pesole said, "The most important thing at this stage is the stickiness of tightening expectations." He stated that even if oil prices fall further, market pricing reflecting expectations of a rate hike should remain above 50 basis points. The Euro fell 0.1% against the US Dollar to 1.1685 USD. The Euro fell 0.2% against the Swiss Franc to 0.9230 CHF, but rose 0.1% against the Japanese Yen to 186.12 JPY.