The post Set for a move to 1.10 – ING appeared on BitcoinEthereumNews.com.

The rebound in the EUR:USD 2-year swap spread may stall around -100bp. That would be entirely consistent with EUR/USD trading above 1.10 even when factoring in the softer risk sentiment (as measured by global stocks performance), ING’s FX strategist Francesco Pesole notes. A break above 1.10 is the desired goal “Markets may not take the hawkish re-adjustment in Fed expectations much further, while the same cannot be said about ECB pricing. The EUR OIS curve currently embeds 69bp of easing, which is largely a spillover from Fed pricing, as the latest inflation figures in the eurozone pointed to risks that the ECB may skip a cut in September.” “Risks are undoubtedly skewed to 50bp as opposed to 75bp by the ECB in the three meetings until year-end. We expect EUR/USD to test 1.10 before the US CPI event next week.” “We incidentally favour a continuation of the rebound in Norway’s krone and Sweden’s krona among other high-beta currencies. NOK has particularly taken a major hit from the equity selloff and has plenty of room to recover ahead of a Norges Bank meeting next week which may well fail to endorse the market’s dovish bets as policymakers may well focus on helping the battered currency.” Source: https://www.fxstreet.com/news/eur-set-for-a-move-to-110-ing-202408071119

---

Filed under: News - @ August 7, 2024 7:20 pm