Money markets now fully price in a 25 bps ECB rate hike in July

Well, a solid start to French economic activity in Q2 here is spurring higher yields in the euro area today. And money markets are also liking what they see alongside the more hawkish remarks by ECB policymakers this week.A 25 bps rate hike for July is now fully priced in but I can't help but feel the market is setting itself up for disappointment.We'll see if ECB policymakers will be willing to attest to that in the weeks ahead but otherwise, the euro could find itself in a bit of a pickle when already being under pressure against the dollar after running into resistance around 1.0934-37 yesterday.