EUR/USD can remain anchored to 1.0700 for now – ING
|The Euro continues to suffer from a softening inflation story in the Eurozone. Economists at ING analyze EUR/USD outlook.
ECB communication has not seen drastic changes
While easing inflation should build a case for the doves, ECB communication has not seen drastic changes as we head into next week’s policy announcement.
Yesterday, President Christine Lagarde reiterated her call for more tightening, and her hawkish tone is probably a key factor keeping markets attached to the 40-45 bps pricing for the July meeting.
We have other speakers to keep an eye on today. Barring major dovish remarks, and unless a BoC hike has a positive spill-over on the Dollar, we feel EUR/USD can remain anchored to 1.0700 for now.
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.