EURUSD to be dragged around by GBPUSD today – ING

FXStreet Insights Team FXStreet

EURUSD remains in corrective mode. In the view of economists at ING, Euro could be dragged around by Sterling as focus shifts to UK Autumn Budget.

1.0270-1.0500 remains expected near-term trading range

“Euro is not reacting much to press reports of the ECB favouring a 50 bps over a 75 bps hike in December. Notably, the FX options market has shown no more signs of distress – i.e. investors are not scrambling to buy euro call options – and one can argue that this makes the 1.05 area a slightly firmer ceiling for 4Q22.”

“Expect EURUSD to be dragged around by GBPUSD today – just as it was in September. 1.0270-1.0500 remains our expected near-term trading range for EURUSD.”

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FXStreet Insights Team

FXStreet

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