The ECB likely decide end its stimulus | 17 May 2022

EURUSD trading plan:

European Central Bank policymaker Francois Villeroy de Galhau said a weak euro threatened price stability in the currency bloc. The euro's weakness on currency markets could threaten the ECB's efforts to steer inflation towards its target. Money markets reacted as investors again ratcheted up rate-hike bets, with roughly 95 bps worth of ECB rate hikes priced in by year-end. That's up from roughly 80 bps on Friday and would be the equivalent of the ECB delivering more than three, 25-bps interest rate hikes. the ECB would likely decide at its next meeting to end its stimulus programme in July and raise rates "very soon" after that.

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