EUR/USD to trace out a 1.10/1.12 to 1.15 trading range – ING
|In advance of what could be a very aggressive Fed tightening cycle, analysts at ING remain bullish on the dollar. Regarding EUR/USD, the recent hawkish turn from the European Central Bank (ECB) suggests the pair will probably play out a broad 1.10-1.15 range this year.
March will be a pivotal month for financial markets
“10 March sees the ECB release new inflation forecasts and potentially opens the door for a 4Q rate hike. 16 March sees the Fed release new Dot Plots and possibly starts off the cycle with a 50bp hike. We currently look for five hikes in total from the Fed in 2022.”
“Expect realised volatility to continue to rise.”
“Our preference now is that EUR/USD traces out something like a 1.10/1.12 to 1.15 trading range as we brace for major central bank tightening.”
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