The eurozone dependence on energy prices exports should limit the EUR/USD bullish potential in our opinion, says the FX analyst of ING, Francesco Pesole.
The right value in the short term is just below 1,110
“We had already argued before the conflict between Israel began and Iran that the movements beyond 1,1600 began to seem too stretched based on previous overvaluation peaks. At the time of writing, the right value in the short term is just below 1,110 according to our model, and movements below 1,1640 would send the torque beyond the upper limit of three standard deviations.”
“Anyway, the price action in the next few days will depend largely on the volatility of the oil market and the USD movements. On the side of the Eurozone, the main prominent points are the results of the Zew survey that are published tomorrow, and some speeches of the members of the Governing Council of the European Central Bank. Cipollone. “
“A lot of action is expected in other European central banks. The Riksbank (Wednesday) and the Swiss National Bank (Thursday) are expected to cut rates in 25 basic points, although for the first, it is a more adjusted decision to the light of the latest clashes in oil prices. Maintenance are expected by the Bank of England and the Norges Bank on Thursday.”
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.
