Select Language

EUR: Negatives piling up - ING

Breaking news

EUR: Negatives piling up - ING

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.10.02 18:55
EUR: Negatives piling up - ING

update 2024.10.02 18:55

EUR/USD looked expensive in light of wider rate differentials (in favour of USD) and rising risks from the Middle East and French politics. Ultimately, it was the Israel-Lebanon-Iran tensions that triggered a move below 1.110, but the other two factors also remain negative for the pair, ING's FX strategist Francesco Pesole notes.

EUR/USD set to re-test 1.1000 in the short term

"French Prime Minister Michel Barnier faced a rough first speech in the Parliament, drawing criticism from both left- and right-wing factions as he laid out his policy plans. Despite a central pledge for fiscal consolidation, he delayed the plan to bring back the deficit within the 3% EU limit by two years, to 2029. That kept OATs offered, and the 10-year spread with bunds close to 80bp. Our rates team is doubtful there is much respite in sight for French bonds."

"On the rates side, short-term differentials look unlikely to retighten sharply in the near term in favour of EUR, as markets are already pricing in 70bp by year-end from the Fed and yesterday's decline in eurozone's inflation below the 2% target means significant pressure on the ECB to continue cutting at the October meeting. We retain our call for EUR/USD re-testing 1.1000 in the short term."  


Date

Created

 : 2024.10.02

Update

Last updated

 : 2024.10.02

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

AUD/USD ascends on mixed US data, ends week with losses

The Australian Dollar recovered some ground against the Greenback on Friday after a measure of prices paid by producers reaffirmed that inflation is coming down, warranting further easing by the Federal Reserve.
New
update2024.10.12 07:28

USD/JPY Price Forecast: Consolidates within the 148.00-149.50 range

The USD/JPY edged higher during the North American session as US Treasury yields remained higher, particularly the 10-year T-note, which was up close to four basis points at 4.104%.
New
update2024.10.12 06:13

Canadian Dollar sheds weight for eighth straight day

The Canadian Dollar (CAD) fell against the Greenback for an eighth consecutive trading day as markets pivot out of the Loonie in favor of the US Dollar.
New
update2024.10.12 05:51

Gold surges on mixed US data, increased Fed rate cut speculation

Gold rallied over 1% on Friday, with the yellow metal set to end the week with modest gains of 0.20% after inflation data revealed on Friday and the Consumer Price Index (CPI) report on Thursday capped the Greenback's advance.
New
update2024.10.12 05:09

Mexican Peso rallies as Fed rate cut bets weaken the US Dollar

The Mexican Peso registers gains against the Greenback for the second consecutive day after hitting a low of 19.61 in early trading on Thursday.
New
update2024.10.12 03:09

Dow Jones Industrial Average hits fresh record high after slack PPI print

The Dow Jones Industrial Average (DJIA) rose over 400 points bottom-to-top on Friday, bolstered into a fresh record high of 42,837 after US Producer Price Index (PPI) inflation figures cooled in September.
New
update2024.10.12 02:38

US: The outlook is improving, but some risks remain - National Bank of Canada

Recent weeks have been punctuated by a number of positive developments for the U.S.
update2024.10.12 00:59

Mid-east conflict and OPEC+ restraint hopes preventing a sharp oil correction - TDS

Notwithstanding concerns surrounding a wider Middle East war, which could disrupt oil flows from the region, China stimulus disappointment and OPEC+ producer plans to bring barrels back in the coming months have put the crude oil market at risk of a sharp correction.
update2024.10.12 00:21

EUR/GBP slides lower as analysts bet on ECB easing, UK data beats expectations

EUR/GBP edges lower on Friday as traders sell the Euro (EUR) due to the increasing likelihood of the European Central Bank (ECB) making more aggressive interest rate cuts in the future.
update2024.10.11 23:55

GBP/USD Price Forecast: Bounces from weekly lows as 'hammer' hints reversal

The Pound Sterling recovers some ground against the greenback as a 'hammer' emerges on the daily chart and rises above 1.3050, registering gains of over 0.15%.
update2024.10.11 23:39

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel