EUR/USD can stabilise around 1.0850 – ING
On Tuesday, EUR/USD temporarily moved above 1.0850 before ending the day at roughly unchanged levels. Economists at ING analyze the pair’s outlook.
Limited impact of France budget news
France hit the headlines on Tuesday as it reported the 2023 deficit at 5.5% of GDP, substantially above the 4.8% seen in 2022 and higher than the government target of 4.9%. We estimate that the deficit may well exceed 5% again in 2024.
The Euro has – however – remained shielded from the news as OAT spreads didn’t move much. Fiscal concerns should rise again as we head into the September budget in France, but we think the European Central Bank will be well into its monetary easing process, making the general environment for eurozone bonds quite favourable.
Looking again at this week, we do not see major catalysts for a break higher or lower in EUR/USD unless US core PCE surprises (consensus is clustered at 0.3% month-on-month). We think the pair can stabilise around 1.0850.
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.