EUR/USD pauses near 1.18 target – ING
|EUR/USD has stalled near 1.1800, with heavy option expiries likely to keep the pair range-bound as markets await potential direction from this week’s ECB meeting, ING's FX analyst Chris Turner notes.
ECB meeting poses event risk
"EUR/USD briefly touched our long-standing year-end target at 1.1800 yesterday and has since receded. We note that approximately $10bn worth of option expiries are due to fall over the next week, with strike levels between 1.1750 and 1.1800. This suggests EUR/USD could hang around these levels for a while."
"As mentioned yesterday, the supply-driven fall in energy prices is good news for the euro, but EUR/USD will face some event risk in the form of Thursday's ECB meeting. Here the hawkish comments from the ECB's Isabel Schabel really reverberated through FX and rates markets last week."
"Should she be exposed as a hawkish outlier on Thursday and eurozone growth forecasts be revised insufficiently higher, then the euro could get hit."
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.