EUR/USD to hover around 1.05/1.06 into and after the ECB meeting – ING
|EUR/USD has continued to find good support despite US 10-year yields reaching 5% and risk sentiment staying unstable. Economists at ING analyze the pair’s outlook ahead of the European Central Bank meeting on Thursday.
Cautious tone
The EUR-USD 2-year swap rate differential has remained wide, at -120 bps. The impact of ECB communication on this differential is generally less significant compared to that of the Fed, and given our expectations for a cautious tone at this meeting with limited guidance provided, we don’t expect material spillovers into FX this month.
We expect EUR/USD to hover around 1.05/1.06 into and after the ECB meeting.
The Dollar leg and geopolitical events may well have a bigger say in guiding any short-term trend.
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.