EUR/USD: Very dovish ECB to keep the pair vulnerable towards 1.17 – ING
|The current environment allows some stark divergence between the European Central Bank (ECB) and the Federal Reserve (Fed) to play out. Subsequently, the EUR/USD is expected to test the 1.17 level, in the view of economists at ING.
See – EUR/USD: Scope for a nosedive to the 1.1575 mark – Commerzbank
ECB gets its way with the euro
“EUR/USD has come under steady pressure after the ECB shifted to a symmetrical 2.0% inflation target in late July. This comes at a time when the Fed is preparing to normalise policy. Recent comments from Vice Chair Clarida suggest the Fed could be ready to tighten in early 2023.”
“With US jobs numbers likely to improve into September, the US dollar can stay bid, EUR/USD pressing 1.17.”
“Our preference is for a 1.17-1.23 range into year-end (the dollar is seasonally weak at end of the year), but risks are clearly skewed lower.”
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.