EUR: Don't expect ECB guidance – ING
|
European Central Bank President Christine Lagarde stuck to a strictly neutral tone in her EU Parliament speech yesterday, ING's FX analyst Francesco Pesole notes.
Next major support is the 200-DMA at 1.0725
"It’s admittedly hard to ask for anything different than rigorous data dependency at a time where uncertainty on the tariff impact is paired with uncertainty about fiscal stimulus implications. In other words, don’t expect any ECB guidance before data has already set the direction for the euro."
"For the time being, the unwinding of the EUR/USD rally is matching our call, even if perhaps slightly earlier than we would have thought. Again, noise risk is elevated, but our preference in terms of multi-week directions is still down for the pair. A 2-year swap rate differential around the current -150bp would still be consistent with EUR/USD at 1.07."
"We also have a light calendar today in the eurozone and no ECB speakers. The next major support for EUR/USD is probably the 1.0725 200-day moving average, which is now the key benchmark for a return to a bullish mood on the greenback."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.