EUR/USD: A return to the 1.0600/1.0650 area around the Fed meeting seems appropriate – ING

FXStreet Insights Team FXStreet

In the view of economists at ING, EUR/USD sensitivity to the Dollar leg and – by extension – US activity data should be even higher at this point.

Driven even more by the Dollar after dovish ECB hike

We think that at this stage EUR/USD will revert to being even more driven by the Dollar leg. Markets have taken on board the notion that the ECB has likely peaked, meaning that data releases in the Eurozone should lose some degree of market relevance.

Lagarde has probably switched from a near-term hawkish narrative to defending a higher-for-longer approach to combat inflation: expect some pushback against rate cut speculation if Eurozone data deteriorate further.

We could see EUR/USD inch back higher today, but a return to the 1.0600/1.0650 area around the Fed meeting seems appropriate.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD advances to three-week high above 1.3400 as UK political risk eases

The GBP/USD pair builds on Wednesday's gains and trades in positive territory above 1.3400 during the early European trading hours on Thursday. Fading political uncertainty following the resignation of Keir Starmer in late June provides some support to the British Pound against the US Dollar. However, the risk-averse market atmosphere could limit the pair's upside.

EUR/USD climbs toward 1.1450 despite Mideast tensions

EUR/USD gains traction in the European session on Thursday and advances toward 1.1450. Despite the escalating tensions in the Middle East, the US Dollar (USD) struggles to find demand and allows the pair to stretch higher. Weekly Jobless Claims data will be featured in the US economic calendar.

Gold rebounds to $4,100 but struggles to gather momentum

Gold manages to stage a rebound and clings to modest daily gains near $4,100 following a three-day slide. With Middle East hostilities reviving fears of high global inflation, which could cause major central banks to refrain from easing monetary conditions, XAU/USD finds it difficult to gather momentum.

Hyperliquid: Short-term noise in HYPE price masks breakout potential to $100

Hyperliquid continues to slide for the fourth consecutive day this week as retail demand eases amid broader market risk-off sentiment. A surge in HIP-3 Open Interest reflects steady demand for tokenized Real World Assets, amid institutional inflows that support the broader upward trend.

Japan may be changing its Yen strategy, but markets don’t look scared

Japan may be changing its intervention playbook, but that might not be enough to rescue the battered Yen. With USD/JPY hovering at four-decade highs, the currency’s weakness is being driven less by speculative pressure and more by a powerful structural force: the wide US-Japan rate gap.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.