EUR/USD witnessed a minor rally on Tuesday, prompting economists at ING to scrutinize the outlook for the world’s most popular currency pair.
In the current low volatility environment, the spot market for EUR/USD is characterized by a challenging scenario, with a breakout proving elusive. Analysts note the difficulty in achieving a substantial market shift given the sticky nature of the spot market.
Anticipation surrounds the upcoming European Central Bank (ECB) meeting on Thursday, introducing potential downside risks for the Euro. Despite any negative impact on the Dollar resulting from today’s U.S. event risk, ING economists suggest that the EUR/USD pair may face challenges in maintaining a break over the 1.0900 threshold.
As market participants bide their time ahead of the ECB meeting, the analysis underscores the complexities presented by the current low volatility conditions, emphasizing the cautious stance maintained by traders in the face of potential developments.
