Dutch International: Euro Weakness Increases Pressure on European Central Bank to Raise Interest Rates

Chris Turner of the Dutch International Group stated in a report that the weakening of the euro against the dollar has increased pressure on the European Central Bank to release a signal of "moderate tightening" in its monetary policy on Thursday. He said it is widely expected that the European Central Bank will raise interest rates by 25 basis points to 2.25%, and may hint at further rate hikes in the future, thereby supporting market bets that the ECB will take action again when it releases new forecasts in September. Data from the London Stock Exchange Group shows that the euro rose 0.1% to $1.1526, but still remains close to the two-month low of $1.1505 reached after a new round of conflict between Iran and Israel overnight.