The French political drama sent EUR/USD below 1.05 yesterday. Rate spreads have widened to year-highs as the market assumes pressure will only grow on the ECB to cut rates if the French and German governments spiral out of control, ING FX analysts say , Chris Turner.
EUR/USD correction could be limited to the 1.0550 area
“EUR/USD may not need to fall much further from here at the moment. And in fact, there are some upside risks if the US JOLTS data disappoints today.”
“However, any EUR/USD correction could be limited to the 1.0550 area. Expect EUR/USD to pay increasing attention to the French-German bond spread and the French sovereign CDS to see to what extent investors “They are willing to push the French sovereign risk.”
“We are a little surprised not to see EUR/CHF trading below 0.93 on this news and continue to favor a retest of 0.9200/9210 in the coming months.”
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.
