There has been a lot of speculation about a 50 basis point rate increase in July, as well as speculations of an unexpected hike on June 9th, but this could be too early and improbable to happen.
What can potentially happen is a shift in tone from the ECB following the statement, which has helped the euro to hold its own against the dollar on a weekly period.
The EUR/USD price action has kept the euro at a high level ahead of tomorrow’s rate statement. Although the conclusion of the ECB meeting is unpredictable, all strong support (1.0600) and resistance zones might be threatened.
After all, a hawkish outcome may drive the euro over 1.0700 and the resistance zone, whereas an ECB that sticks to its earlier stance could drive the euro back below 1.0600 support.