EUR jumps after Wunsch comments

EUR jumped in the early afternoon following comments from Pierre Wunsch, chief of Belgian central bank and ECB member. Wunsch said that ECB rate hikes may need to continue beyond September if core inflation holds around 5%. Wunsch comments echo remarks made by another ECB hawk this morning - Joachim Nagel, chief of German central bank. Nagel said that in his opinion the ECB still has more ground to cover and that interest rate hikes may need to extend beyond summer break.

ECB delivered a 25 basis point rate hike yesterday and ECB chief Lagarde strongly hinted at post-meeting press conference that July hike is very likely. However, she refrained from making comments at the September meeting.

Taking a look at EURUSD at 5-minute interval, we can see that the pair broke above the 1.0950 resistance zone following Wunsch comments. However, the pair has not managed to paint a fresh daily high, at least not yet.

Source: xStation5