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EUR/USD breaks above 1.150 as dollar stays under pressure
ING notes a move above 1.160 may not last unless markets reprice USD rates lower again and Middle East tensions ease.
EUR/USD pushed above 1.150 as the US dollar remained under broad-based pressure, according to a market note from ING’s Francesco Pesole summarized by FXStreet. The euro, however, did not keep pace with all of its G10 peers despite stronger recent Eurozone releases.
FXStreet said Pesole pointed to Eurozone data strength, including Q2 GDP growth of 0.4% quarter-on-quarter and hotter July inflation readings in Germany and Spain. The note also flagged that today’s Eurozone-wide inflation print is expected to come in at 2.9% for headline and 2.4% for core.
ING’s view, as relayed by FXStreet, is that the shift in USD momentum leaves near-term risks for EUR/USD tilted to the upside. Still, the bank cautioned that any push above 1.160 could prove difficult to sustain without further USD repricing.
The note added that EUR/USD may continue to find support near the 1.150 level for a while, even as traders look ahead to a packed US calendar and evolving geopolitical risk. FXStreet also said stabilization could be seen in the near term, depending on those incoming catalysts.
Latest closeEUR/USD 1.153 ▲0.5%