Markets are being forced once again to reassess the risks of the banking crisis and that will drive much of the G10 currency swings this week. Even so, policy spreads seem to point more clearly to a rise in EUR/USDin the opinion of the economists of ENG.
Reassessing the risks?
“Although our general view is in favor of a higher EUR/USD due to monetary policy divergence, last Friday brought us a warning not to jump to the conclusion that the banking turmoil is turning into a US history only and therefore in a bullish line for EUR/USD. a move towards 1.10 in the coming weeks remains a very tangible possibility.”
“For this week, a retest of 1.0900 would already be a very welcome sign for EUR/USD bulls.“.
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.
