In the view of economists at ING, EUR/USD sensitivity to the Dollar leg and – by extension – US activity data should be even higher at this point. Dri
sensitivity to the Dollar leg and – by extension – US activity data should be even higher at this point.We think that at this stage EUR/USD will revert to being even more driven by the Dollar leg. Markets have taken on board the notion that the ECB has likely peaked, meaning that data releases in the Eurozone should lose some degree of market relevance.
Lagarde has probably switched from a near-term hawkish narrative to defending a higher-for-longer approach to combat inflation: expect some pushback against rate cut speculation if Eurozone data deteriorate further. We could see EUR/USD inch back higher today, but a return to the 1.0600/1.0650 area around the Fed meeting seems appropriate.Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD Forecast: Higher US CPI should not twist Fed’s handThe EUR/USD pair held within familiar ranges throughout the first half of Wednesday as market participants awaited United States (US) inflation figur
Read more »
EUR/USD: Scope for further consolidation near termExtra range bound is likely in EUR/USD in the next few weeks, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group. Key Quote
Read more »
ECB Preview: Three scenarios and their implications for EUR/USDEconomists at TD Securities discuss the European Central Bank (ECB) Interest Rate Decision and their implications for the EUR/USD pair. Hawkish (45%):
Read more »
ECB Preview: EUR/USD post-meeting jump to stall around 1.0800/1.0830Economists at ING are not convinced the ECB can trigger a sustainable EUR/USD rally. A post-hike rally may not last It is a close call, but we expect
Read more »
EUR/USD languishes near six-month low, seems vulnerable below mid-1.0600sThe EUR/USD pair oscillates in a range below mid-1.0600s during the Asian session on Friday and consolidates the previous day's post-ECB slump to a si
Read more »