Dutch International: the downside potential for the euro against the US dollar seems limited.

Francesco Pesole of the Netherlands International Group stated in a report that the possibility of the euro falling against the US dollar again cannot be ruled out, but any decline should be limited. He said that Eurozone inflation data for June, released on Wednesday, would need to be significantly lower than expected in order to prevent the market from betting on an interest rate hike later this year. "Similarly, the threshold for increasing expectations of a rate hike again is high." Most of the changes in interest rate expectations are happening in the United States, where bets on rate hikes have been reduced. He said the euro should remain above $1.1300 and could potentially return above $1.15 in the summer. Data from the London Stock Exchange Group shows that the euro rose 0.1% to $1.1380, after hitting a one-year low of $1.1324 on Wednesday.