According to the newest minutes from ECB's July meeting, the rates in the Euro Area are currently remaining in the neutral territory.
Despite ongoing and exceptionally high uncertainty, several members view inflation risks as tilted to the downside. Nevertheless, waiting was highly valuable and robust option to manage uncertainty and monitor tariffs' impact.
Past rate cuts continue to transmit, easing credit and supporting demand, though bank lending growth remains modest. Markets are pricing in one more 25bp cut by year-end, but overall conditions remain loose. EBC's communication should remain unninformative of next moves.
The euro's appreciation has been considered as strucutural and unlikely to reverse in near term.

The correction on EURUSD over last hour is more on a technical side, given the pause-reaffirming tone of the minutes and meassured comminication signaled. The exchange rate is currently in the middle of the ongoing consolidation, following the rebound from recent lows around 1,156-1,157. Source: xStation5
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