ECB Ready to Raise Rates in July, Nagel Says

The ECB's rate hike signal could support the EUR. Technically, the RSI at 55.6 is in neutral territory, and the MACD line is above the signal line, indicating short-term upside potential. The price is trading above the 20- and 50-day moving averages, confirming an uptrend. However, yesterday's slight decline and the possibility that the market has partially priced in the rate hike limit the upside expectations. Overall, an upward movement can be expected in the short term.

The ECB's signal of a rate hike could create short-term pressure on indices with high interest rate sensitivity, such as the DAX. Technical indicators support this view: the RSI at 37 is approaching oversold territory, but momentum remains weak and the MACD is in negative territory. The price is trading below both the 20-day and 50-day moving averages, indicating a continued downtrend. The 2.3% decline in the last 24 hours points to increasing selling pressure. However, the RSI nearing oversold levels also raises the possibility of a short-term corrective bounce.

The ECB's rate hike signal could create downward pressure on the index, particularly in the short term, by dampening risk appetite. The CAC index is trading below its 50-day moving average (8224.59), and the RSI at 48.8 indicates neutral territory with weak momentum. The MACD line is below the signal line and in negative territory, suggesting that selling pressure may persist. The 0.83% decline over the past 24 hours may have partially reflected the impact of the news, but the rate hike expectation could further drag the index lower. In the short term, a break below the 8200 support level could accelerate the decline.

The ECB's signal of a potential interest rate hike could support the euro, creating upward pressure on EURJPY. Technically, the RSI is at 59, in neutral territory, but the MACD line is above the signal line and positive, indicating short-term bullish momentum. The price is above the SMA20 but trading near the SMA50, suggesting potential resistance. With the news impact, the 185.50-186.00 range could be tested, but since the pair has not entered overbought territory, there is a risk that the upside may be limited.