Woofun AI reports that market consensus expects the European Central Bank to maintain its deposit facility rate at 2.25% during its upcoming policy meeting. This outlook follows a 25-basis-point increase in June and Scotiabank's observation that policy paths need not be linear amid uncertainty. ECB President Lagarde noted on July 1 that inflation upside risks and growth downside risks appear more balanced than previously assessed.

Meanwhile, escalating US-Iran tensions drove WTI and Brent crude prices up by approximately $12 per barrel, contrasting with June eurozone CPI data showing a 0.1% month-on-month drop and core CPI falling from 2.6% to 2.4% year-on-year.