EUR/USD fluctuates above 1.06. ING economists analyze the pair’s prospects.
The market has closed the door to new increases from the ECB
Isabel Schnabel, of the European Central Bank, has stated that the ECB cannot close the door to further rate hikes. However, the market has ruled out any further rate hikes and is looking firmly to the 2024 easing cycle. This means that, despite the recent rate cut in the US, EUR:USD swap spreads Two years ago they have not reduced significantly and probably explains why EUR/USD is having a difficult time taking advantage of the softer Dollar environment.
However, given global conditions, we would favor EUR/USD towards the 1.0675/1.0700 area today, unless the US jobs report surprises to the upside.
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.
