The trade in EUR/USD was very quiet yesterday. Economists at Commerzbank analyze ECB policy outlook and its implications for the Euro.

ECB doves try to dampen expectations

It is hardly surprising that the hawks are advocating a rate hike in September reasonably clearly, whereas the doves are trying to dampen expectations.

The doves might increasingly make cautious comments at least if the economic data points more or less towards easing price pressure so that the Euro’s upside potential might be limited for now.