ECB quarter-point hike seen a certainty as focus turns to September meeting

The European Central Bank is considered to be certain to lift interest rates by a quarter point, to 3.75%, with attention on what comments are made with respect to September’s meeting. Survey data released this week showed a sharp deterioration in output and bank loan demand. The decision comes at 1:15 p.m. local time (8:15 a.m. Eastern), followed by a press conference with ECB President Christine Lagarde a half-hour later. The euro
EURUSD,
+0.37%
was just below $1.11, as the yield on the 2-year German bund
TMBMKDE-02Y,
3.094%
was 3.08%.