EUR/USD has been holding steady at 1.07 despite a significant move in US rates. According to economists at ING, the direction of the pair is likely to be determined by the Fed’s response to recent market turbulence, particularly the fallout from the SVB crisis.
Unwinding of Hawkish Rhetoric Expected to Stabilize Sentiment
Based on the information available, ING economists anticipate some unwinding of the recent hawkish rhetoric from the Fed, which could help stabilize sentiment and translate into a stronger EUR/USD. The size of the rally, however, will depend on how the Fed “overreacts” to the current market conditions.
EUR/USD Rally Targeted at 1.08-1.09 by Week’s End
ING economists expect the EUR/USD to rally to 1.08-1.09 by the end of the week. However, the size of the rally will depend on the Fed’s response to the current market conditions.
EUR/USD Holds Steady Despite US Rate Movement
Despite the recent significant move in US rates, the EUR/USD has been holding steady at 1.07. The direction of the pair, however, is expected to be determined by the Federal Reserve’s response to recent market turbulence. ING economists anticipate that the Fed will unwind some of its recent hawkish rhetoric, which could help stabilize sentiment and translate into a stronger EUR/USD.
Unwinding of Hawkish Rhetoric Expected to Stabilize Sentiment
ING economists believe that the Fed’s recent hawkish rhetoric has contributed to the recent market turbulence. They anticipate that the Fed will unwind some of this rhetoric in response to current market conditions, which could help stabilize sentiment and support a stronger EUR/USD. The size of the rally, however, will depend on how the Fed responds to the current market conditions.
EUR/USD Rally Targeted at 1.08-1.09 by Week’s End
ING economists expect the EUR/USD to rally to 1.08-1.09 by the end of the week. However, the size of the rally will depend on the Fed’s response to the current market conditions. If the Fed takes a more measured approach, the rally may be more modest. If the Fed overreacts, the rally could be larger. Ultimately, the direction of the EUR/USD will be determined by the Fed’s response to the current market turbulence.
In conclusion, the EUR/USD has been holding steady despite significant movement in US rates. The direction of the pair, however, is likely to be determined by the Federal Reserve’s response to recent market turbulence, particularly the fallout from the SVB crisis. ING economists anticipate that the Fed will unwind some of its recent hawkish rhetoric, which could help stabilize sentiment and support a stronger EUR/USD. They expect the pair to rally to 1.08-1.09 by the end of the week, but the size of the rally will depend on the Fed’s response to the current market conditions.
