ECB relies on data

In Asian trading on Thursday (May 11), the latest price of EUR/USD was 1.0985, and the opening price was 1.0980. European Central Bank officials have begun to acknowledge that further rate hikes may be needed in September to keep inflation under control. The ECB’s reliance on data means any perception of economic expectations for the next four months could easily shift.

Still, some policymakers across the ECB’s Governing Council are speculating that the expected two quarter-point rate hikes may not be enough to curb consumer prices. That means the central bank could take a third move to raise the deposit rate to 4% from the current 3.25% when it meets again after its summer recess on Sept. 14.