The EUR/USD pair appears entrenched at 1.0900, prompting economists at ING to delve into the currency pair’s potential trajectory. As financial markets await pivotal events, including Wednesday’s PMIs and the European Central Bank‘s (ECB) upcoming decision on Thursday, ING analysts provide insights into the Euro’s outlook.
ECB Meeting Impact on Euro Deemed Limited
The focus today centers on Eurozone consumer confidence and the ECB lending survey, with anticipation building ahead of the ECB meeting. While market participants eagerly await crucial economic indicators, including Wednesday’s PMIs, and the upcoming ECB decision on Thursday, ING analysts offer a cautious perspective on the Euro’s potential response.
Market Movement Hinges on Western Stock Indices
The near-term trajectory of the EUR/USD pair is expected to be influenced by the performance of Western stock indices. The analysts highlight that today’s movement will largely hinge on whether Western stock indices can sustain the positive sentiment observed in Asian equities and FX.
Sustainable Rally Above 1.1000 Deemed Unlikely
ING analysts express skepticism regarding the likelihood of a sustainable rally for the EUR/USD pair to surpass levels above 1.1000. They emphasize that, despite the forthcoming ECB meeting, they do not view it as a game changer for the Euro. This assessment underscores their cautious stance on the potential for a significant upward shift in the currency pair’s value in the current market conditions.