EUR/USD to again push towards 1.25 - Westpac
|This month has seen a continuation of Eurozone’s data moderation since early 2018 and although this has failed to impact EUR, the softness in surveys and inflation pressures this week highlight the potential that the forthcoming ECB meeting may reinforce the “patient, persistent and prudent” policy guidance, suggests Tim Riddell, Research Analyst at Westpac.
Key Quotes
“Although receiving less attention at present, Merkel’s coalition is notably less likely to back Macron’s aims for a more centralised EU let alone his more radical views for EU reform. Without any genuine fiscal or structural reforms (despite rail initiative in France), the ECB may again highlight that their policy remains the sole support towards self-sustaining growth within the EU.”
“EUR/USD is again pushing towards 1.25 into next week. Such levels previously prompted ECB members to cite FX risks for their growth and inflation projections. Nevertheless, USD’s failure to gain from interest rate advantages seems to be a key driver at present.”
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.