EUR/USD continues to trade above 1.07. ING economists analyze the outlook for the pair.
EUR/USD will find a base in the 1.05/1.07 zone this month
The good demand for currencies related to commodities and the appreciation of the Real, the Rand and the Shekel seem to indicate that investors could move to their next big objective, which is the cyclical fall of the Dollar in the second half of the year. This is our basic view and one of the reasons why we think EUR/USD will find a base in the 1.05/1.07 area this month before breaking above 1.15 by the end of the year.
Beyond the US data and the Fed meeting, this week the focus will be on the ECB meeting on Thursday. It seems too soon for the ECB to let its guard down when it comes to inflation, but a hawkish move by the Fed could be taking over and the EUR/USD could retest last week’s low at 1.0635.
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.
