Euro Eyes Further Gains on Hawkish ECB Expectations. Forecast as of 20.07.2026

Slowing inflation in Europe and the escalating conflict in the Middle East suggest that the ECB will likely require additional data before making policy decisions. At the same time, hawkish rhetoric could continue to support the EUR/USD pair. Let's examine the key drivers and develop a trading plan.Major Takeaways Investors are in no rush to sell the US dollar. Stabilizing oil prices do not necessarily signal a slowdown in PCE inflation. The euro could gain support on expectations of a hawkish E