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Euro seen heading back toward 1.15 vs dollar if Fed turns dovish

FXStreet cited ING’s view that EUR/USD could revisit the 1.1400 to 1.1450 area, with guidance tied to expectations for a less hawkish Fed.

Reported · Written up by our desk · Major Pairs

ING’s Francesco Pesole said EUR/USD may have bottomed last week if markets continue to hold a constructive view on further geopolitical de escalation.

Pesole added that pushing EUR/USD into a sustained move above 1.15 would likely require dovish repricing from the Federal Reserve and stabilization in risk sentiment.

With a light eurozone calendar, the newsletter said the pair should mainly take its cue from the Federal Open Market Committee, and it expects a baseline reaction to a modest dovish Fed surprise.

As a result, ING’s base case is for EUR/USD to move back into the 1.1400 to 1.1450 range over the coming days, even as renewed military strikes were flagged as a reminder that caution is still warranted.

Latest closeEUR/USD 1.139 ▼0.1%

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