EUR/USD to stay offered in a 1.01-1.03 trading range – ING
|EUR/USD continues to trade below 1.02 at the beginning of the week. The pair is set to remain soft within a 1.01-1.03 range, analysts at ING report.
Italy's rating outlook change will not help the euro
“Rating agency Moodys shifted its rating outlook on Italy's sovereign debt from stable to negative. That has raised some eyebrows and no doubt will call the European Central Bank into further supportive action, be it through the more aggressive re-investment of the Pandemic Emergency Purchase Programme or potentially even using its new support instrument – the Transmission Protection Instrument (TPI). None of this will help the beleaguered euro. Indeed, if quiet summer markets prompt renewed interest in the carry trade, the euro will probably be one of the preferred funding currencies.”
“EUR/USD was understandably hit by Friday's strong US jobs release data and looks like it can stay offered in a 1.01-1.03 trading range.”
“EUR/CHF will be monitoring the performance of Italian bonds today and can probably edge back towards the lower end of a 0.97-0.98 range – a move that will not be unwelcome to the newly hawkish Swiss National Bank.”
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.