As things stand, markets are well expecting the ECB to stay put in July. Policymakers themselves have confirmed that in saying that only a "negative surprise" to the June inflation numbers would really affect their line of thinking. And as we see with the data, inflation dynamics were slightly better in June and that will offer some comfort and breathing room for the ECB.The supposed "reopening" of the Strait of Hormuz was supposed to help more with that. However, things have taken a turn for the worse in the past week and uncertainty continues to linger over the future.Inflation pressures are still likely to stay as such with markets also being conditioned to arguably just one more rate hike by the ECB for this year. As things stand, traders have fully priced in a move for September with ~36 bps of rate hikes priced in by year-end.That seems to be a view that MUFG shares as well. The firm notes that:"After attempting to break below the 1.1400-level again, EUR/USD has since risen back up to within touching distance of 1.1450 overnight. The euro has benefitted from the pullback for the US dollar after the FOMC minutes were less hawkish than feared, and the price of Brent dropping back below $80/barrel overnight. At the same time, the Eurozone rate market has moved to price in a higher probability of further ECB rate hikes with the market leaning more towards two rather one final hike.The hawkish repricing has been encouraged by the jump in oil prices triggered by renewed tensions in the Middle East, and hawkish comments from ECB officials. Governing Council member Joachim Nagel indicated that further hikes maybe required while expressing concern by the renewed tensions in the Middle East. At current energy price levels, we remain comfortable with our call for one final hike in September." This article was written by fl9bde53b91e184082bbe3aa3acaaf2cb0 at investinglive.com.