EUR/USD retests the 1.07 support. The contrast with worsening growth outlook in Europe may push EUR/USD back to 1.05 in Junein the opinion of the economists of ENG.
Euro struggles to find a solid bullish driver
“The last few days seem to have conveyed the message that the Fed’s tightening cycle is based on a stronger growth story than Europe’s and speculation around a pause in September is being held at bay for now. instance, we believe that all this is laying the foundations for a period of gradual reaffirmation of the dollar.”
“While elevated inflation maintains ECB tightening expectations, the euro – which is already embedding a good deal of monetary tightening – is struggling to find a solid bullish driver at the moment.”
“We continue to target a return to the 1.05 area in EUR/USD by the end of this month.”
Source: Fx Street
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