EUR/USD has fallen below 0.9900 for the first time since October 2002. ING economists expect the world’s most popular currency pair to extend your decline towards the 0.9600/0.9650 zone.
The 75 basis point hike is too big a jump for the ECB
“Gas news has sent EUR/USD to a new yearly low and it is not obvious where the next support levels lie: perhaps at 0.9850 and not until the 0.9600/0.9650 zone.”
“We believe that the weekend’s support package for the German economy does not go far enough: it is only worth 2% of GDP compared to support levels of 15% of GDP that have been seen during the pandemic. “
“We think a 75 basis point hike at Thursday’s meeting is too big a jump for the ECB – we expect 50 basis points. This won’t help the euro.”
Source: Fx Street
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