Chris Turner: The European Central Bank's interest rate hike expectations support the euro, while the Federal Reserve's outlook dominates the market

According to Jinshi reports, ING analyst Chris Turner stated that expectations for the European Central Bank to possibly raise interest rates again in September are supporting the euro. He pointed out that tensions between the U.S. and Iran have led to a surge in oil prices, but the euro has shown resilience as the yield spread has narrowed in favor of the euro.

However, he also mentioned that the prospect of the Federal Reserve raising interest rates is a "more dominant theme," which could lead to the euro falling below 1.14 against the dollar.