Created
: 2025.07.04
2025.07.04 18:25
Markets are starting to hear a little more from the European Central Bank about the strength of the Euro (USD), ING's FX analyst Chris Turner notes.
"The general view seems to be that a quick EUR/USD move through 1.20 would be a concern. For reference, the ECB's Survey of Professional Forecasters back in 2023 asked the question about what a 10% appreciation in EUR/USD would have on macro forecasts."
"The mean response is that it would shave 0.5% off headline CPI in the first year and knock about 0.3% off real GDP. The ECB's response to EUR/USD strength will therefore be carefully crafted remarks centered on the ECB not having an exchange rate target but being fearful that further euro strength could see inflation undershoot its target and prompt deeper rate cuts."
Created
: 2025.07.04
Last updated
: 2025.07.04
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