EUR/USD took its time, but finally Fed’s hawkish message resonated across US yield curve and EUR/USD retreated to recent lows. ING economists analyze the pair’s prospects.
Seems vulnerable
Until the dollar’s strength is broken late in the cycle, EUR/USD remains vulnerable, especially since it does not enjoy any extreme undervaluation support according to our medium-term fair value models.
1.0600/1.0610 appears to be the last support line before 1.0500, which could be the direction to go in case the Bank of England (BoE) does not raise interest rates today and GBP/USD suffers a strong break to the low.
Isabel Schnabel, from the European Central Bank, is on today’s agenda, who will surely highlight the risks of another rate hike by the ECB. However, preliminary European PMI indices for September will be published on Friday, another negative risk event for the Euro.
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.
