Euro: ECB hawkish but EUR still disadvantaged against US Dollar – OCBC

OCBC’s Sim Moh Siong and Christopher Wong observe that while the European Central Bank (ECB) left rates unchanged in July and is expected to deliver at least one more 25 bp hike to 2.50% in September, rising energy prices still tilt terms-of-trade in favor of the US Dollar (USD) over the Euro (EUR).