EUR: Euro eyes peace-talk signals as key Driver – ING
|Euro (EUR) trading remains driven by Russia-Ukraine peace-talk progress, with today’s Witkoff–Putin meeting seen as pivotal. Softer eurozone CPI is unlikely to shift ECB expectations, leaving EUR/USD positioned to retest 1.1700 should the US Dollar (USD) ease, ING's FX analyst Francesco Pesole notes.
Witkoff–Putin meeting in focus for EUR sentiment
"Developments in the Russia-Ukraine peace talks remain the most relevant topic for the euro this week. As US Special Envoy Steve Witkoff meets with President Putin today, we should gain a clearer sense of how close we are to any agreement."
"On the macro side, today’s CPI shouldn’t move the needle dramatically for ECB rate expectations. However, we expect this flash November estimate to show headline CPI slowing from 2.1% to 2.0% and core from 2.4% to 2.3%, which are both 0.1 percentage points below consensus."
"If anything, the risks are slightly on the downside for the euro, but our expectation is for a neutral FX impact nonetheless and EUR/USD can eye 1.1700 again soon if USD drops in line with our call."
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.