EUR/USD: Range-bound movements on the day – OCBC
|Euro (EUR) was little changed, last at 1.1415 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Room for Fed to resume easing cycle in due course
"Daily momentum is not showing a clear bias for now while RSI fell. Support at 1310 (21 DMA), 1.1235 (23.6% fibo retracement of 2025 low to high). Immediate resistance at 1.1420/30 levels before 1.15 levels."
"Last week ECB lowered rate by 25bps, as widely anticipated. But more importantly, Lagarde commented that the ECB is getting to the end of a monetary cycle 'that was responding to compounded shocks, including COVID, the illegitimate war in Ukraine and the energy crisis'. She also said that the ECB is now 'in a good position' to deal with uncertainties ahead, not least due to US trade policies."
"Other ECB officials have also echoed similar views. Vujcic said that the ECB is nearly done while Stournaras said that the bar for more rate cuts is high. Our house view looks for 1 more cut this year, but this is already more than priced in. ECB signalling an 'end is near' reinforced our earlier view that prospects of ECB cut cycle nearing its end and room for Fed to resume easing cycle in due course should see yield differentials narrow in favour of EUR."
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.