Lagarde confirms rate hike in July

During her inaugural speech at the ongoing central banking conference in Sintra, Portugal, President Lagarde announced that the ECB will raise interest rates at its next meeting in July. The banker indicated that inflationary pressures in the services sector would be a key theme for further rate hikes (a drop in sentiment in this sector/services inflationary pressures could encourage the ECB to ease monetary decisions). 

Inflation in EMU remains high all the time, and the second inflationary wave is only now starting to materialise. The banker also sees a growing impact of higher wages on inflation. 

The EURUSD pair has rallied during today's session and is approaching the resistance levels marked last week. Source: xStation 5