On Wednesday (Oct 26), / fell, temporarily trading at 0.9947, down 0.22%.
Dutch bank ING said it could raise interest rates by 75 basis points at Thursday’s meeting, but that won‘t change the direction of the euro.
In a note, analysts at ING Bank said this was mainly due to the weakening correlation between the short-term and dynamics in the eurozone.
This means the ECB‘s “hawkish” statement, which prompts markets to price in more rate rises, is unlikely to provide substantial and sustainable support for the euro.
The ECB has been more hawkish than expected at the past few meetings, but this has not stopped the euro from falling.
It fell 0.1% to 0.9865.
Eurusd recovered 50-DMA and 0.9900 as bull’s eye parity.
In the short term, EUR/USD forms a bullish pennant with a target of 1.0010 as its profit target.
