The euro climbed above $1.09, approaching a six-week high of $1.1 reached on June 22nd, as investors anticipate more interest rate increases in the region despite the ongoing technical recession. Inflation in the Euro Area remains persistently high, and ECB President Christine Lagarde, speaking at the ECB Forum on Central Banking, indicated that peak interest rates are unlikely to be reached anytime soon. Money markets continue to bet on the ECB deposit facility rate peaking around 4%. Lingering doubts about the health of the Euro Area’s economy persist as weak PMI and Ifo data continue to raise concerns regarding the economic outlook.
