The EUR/USD pair is maintaining a bearish stance below the 1.0950 level, prompting economists at ING to provide insights into the outlook for the currency pair.
The analysts note that a break below 1.0875 could pave the way for a move towards 1.0800 during the day. Looking ahead, they highlight a speech scheduled from the Federal Reserve’s Christopher Waller. Anticipating that Waller may avoid delving into the specifics of a 2024 easing cycle, particularly one not commencing in March, the analysts view the event risk as relatively benign. They suggest that such a stance could have a slightly negative impact on the Dollar, while being positive for risk sentiment.
Regarding EUR/USD, ING identifies robust support at 1.0875/1.0880. The analysts express the belief that the Waller speech might lead to the maintenance of this support level, potentially resulting in EUR/USD finishing the day on a higher note. However, acknowledging the uncertainty inherent in predicting speech contents, ING cautions that a breach of the 1.0875 level could open the door for a decline towards 1.0800 during the trading day.
