The European currencies in general are enjoying a good impulse, with the Swiss Franco and the Swedish crown at the top of the G10 scores this week, says the FX analyst of ING, Francesco Pesole.
The next key level is 1,150
“This is a testimony of markets looking for alternatives to the USD (CHF) and possibly playing some optimistic perspectives on a peace agreement between Ukraine and Russia (SEK, Nok). The euro can benefit from both narratives, while the Franco runs the risk of a correction exacerbated by positioning if a truce is reached in Ukraine.”
“On the domestic side, there is still very little to drive to the euro for now. We have some speakers of the European Central Bank to observe, including chief economist Philip Lane, but the position of the Governing Council has been quite indulgent towards the assessment of the market lately, and the markets should continue to consolidate two -cutting expectations this year, leaving little room for the mobility of the SWAP rate in the short term of the EUR.
“We think that some positive headlines for the USD on trade that come from the G7 summit in Canada can put a stop to the EUR/USD before the end of the week. The next key level is 1,150, but the markets may want to support such a level with softer US data and perhaps a more optimistic story about Russia-Ukraine. For now, it seems a bit premature, and we prefer. short term. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
