EUR: Bullish momentum may briefly halt but EUR/$ at 1.25 is a matter of time - ING


According to Viraj Patel, Research Analyst at ING, the EUR has started the New Year pretty much where it left off – on the up and not shy of any positive catalysts.

Key Quotes

“This is certainly the case when considering the backdrop of thriving economic activity and above-potential EZ growth, renewed sentiment over deeper European integration and the markets’ underestimation of the pace and extent of future ECB policy normalisation. These positive factors underpin our view for EUR/USD to move up to 1.25 in 2Q18. However, ahead of this we do look for stability – not least because of a realisation that a sharp rally beyond 1.25 in 1Q18 would test the ECB’s ‘pain threshold’ and elicit a relatively dovish reaction from the central bank.”

“A reality check on EZ inflation data and Italian elections may implicitly help the ECB’s cause by holding EUR bulls at bay in 1Q18. But EUR/USD making a charge towards 1.25 is merely a matter of time.”

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

Recommended content


Recommended content

Editors’ Picks

AUD/USD keeps the gradual recovery in place

AUD/USD keeps the gradual recovery in place

AUD/USD regained balance and returned to the area beyond the 0.6500 barrier on Thursday, leaving behind the recent pullback. The pair’s rebound came on the back of the strong selling pressure in the US Dollar amid poor data, bets for further Fed rate cuts and trade uncertainty.

EUR/USD has room to advance further

EUR/USD has room to advance further

EUR/USD hit fresh tops north of 1.1600 the figure for the first time since October 2021 against the backdrop of an increasingly deteriorated USD outlook. Indeed, the strong selling pressure in the Greenback came in response to another discouraging US inflation results, extra easing of the labour market, and expectations of maybe three rate reductions by the Fed this year.

Gold consolidates its gains near $3,380

Gold consolidates its gains near $3,380

Gold maintains its weekly rebound well in place, now trading in the sub-$3,400 region per troy ounce in response to the persistent selling bias in the US Dollar, declining US yields across the curve and growing geopolitical tensions.

Cardano Price Forecast: Whales acquire 310 million ADA amid potential triangle breakout

Cardano Price Forecast: Whales acquire 310 million ADA amid potential triangle breakout

Cardano (ADA) shows weakness as it reverses from an overhead trendline of a triangle pattern. The altcoin edges lower by over 1% at press time on Thursday, fueling a steeper correction in its Open Interest. Amid weakness, Cardano whales have acquired 310 million ADA tokens so far this month, projecting increased confidence as the triangle pattern nears resolution. 

US tariffs here to stay, trade deals ‘largely symbolic’

US tariffs here to stay, trade deals ‘largely symbolic’

Despite legal challenges to IEEPA tariffs, US trade policy remains firm. Tariffs on steel and aluminium have doubled, and new sectoral tariffs are expected. Trade deals may emerge, but most will be symbolic. Effective tariff rates will stay high throughout 2025.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025