Abstract:Will EUR/USD break above 1.1500? Economists at ING think the balance of risks for the pair is still skewed to the downside, primarily on the back of ECB-Fed monetary policy divergence, and a move above 1.1500 in EUR/USD seems unwarranted.
EUR/USD: Not looking on a move above 1.1500 – ING
Will EUR/USD break above 1.1500? Economists at ING think the balance of risks for the pair is still skewed to the downside, primarily on the back of ECB-Fed monetary policy divergence, and a move above 1.1500 in EUR/USD seems unwarranted.
Eyes on ECB minutes this week
“We do not trust the current USD softness, and we are thus inclined to think that EUR/USD is due for a correction rather than another leg higher.”
“Most of the focus in the week ahead will be on the ECB minutes from the December meeting: a chance to gauge the strength of the hawkish bloc in the policy discussion. Still, any hawkish headline should be filtered by the fact that the Omicron situation in Europe was not as bad when the meeting took place compared to the following weeks.”
“We expect EUR/USD to slide back to 1.12/1.13 in the near term, but for next week, wed already welcome a stabilisation below 1.1500 as a sign that the bullish push on the pair was temporary.”
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Wednesday's major data releases and macroeconomic events are expected to cause volatility to increase after another day of erratic trading in the financial markets. The Spring Budget for the UK will be released, and January Retail Sales figures for January will be made available by Eurostat. ADP Employment Change for February and January JOLTS Job Openings will be discussed later in the session on the US economic docket.
Major currency pairings are still trading in familiar ranges early on Tuesday after the erratic trading on Monday. The US economic docket for the American session will include the factory orders data for January and the ISM Services PMI survey for February. Final updates to the February PMI for the US, Germany, the UK, and the EU will also be released by S&P.
Weekend trading has gained great popularity in recent years due to the rise of online and mobile trading platforms that provide retail investors easy access to markets outside of regular working hours. For traders with Monday-Friday, 9-to-5 jobs, trading on weekends allows them to be active in markets at convenient times.
West Texas Intermediate (WTI) oil price pauses its two-day winning streak but is anticipated to conclude the week on a positive note, trading near $77.00 per barrel during the Asian session on Friday.