According to ING, there will be a sharp Euro reaction to Thursday’s ECB policy decision, especially with markets split on whether rates will be increased again. It adds; “September’s ECB meeting will be a binary risk event for the euro. Our baseline scenario sees a rate hike, which would translate into a stronger euro in the aftermath of the announcement, as market pricing is leaning in favour of a hold.” It expects 1.07 for the Euro to Dollar (EUR/USD) exchange rate will hold ahead of the decision. The bank, however, expects a short-lived impact with the attention quickly moving back to Federal Reserve expectations ... (full story)