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.”

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD hits highest since March amid US protests, European reopening

EUR/USD has jumped above 1.1150, trading at the highest since March. Protests in the US are grabbing the headlines and marginally supporting the dollar. European countries continue reopening their economies amid falling coronavirus statistics. 

EUR/USD News

GBP/USD resumes rally amid Brexit optimism, dollar weakness

GBP/USD is trading above 1.2550, extending its gains. Reports about British readiness to compromise in Brexit talks, conditioned on EU concessions, is helping boost the pound. US protests are eyed.

GBP/USD News

Bitcoin is three steps away from $14000

Bitcoin joins the list of bullish breakouts and leaves the relative highs at $14000 as a clear target in the short term. Ethereum continues to gain market share and sets the price level of $300 as a goal in the short term.

Read more

Gold trades with modest losses around $1735 level, downside seems limited

Gold traded with a mild negative bias through the early European session and was last seen hovering near the lower end of its daily range, around the $1735 region.

Gold News

WTI sits at three-month highs near $36.50 ahead of Russia’s decision, API

WTI (July futures on Nymex) broke its bullish consolidative phase to the upside in the European session and clinched fresh three-month highs at 36.48.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures