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Euro supported as ING points to upbeat ECB outlook

ING expects a 25 basis point ECB hike in September to 2.5% and says EUR/USD should defend the 1.1650-1.1660 area before moving toward 1.1700-1.1710.

Reported · Written up by our desk · Major Pairs

FXStreet highlights analysis from ING that an upbeat tone from ECB policymaker Isabel Schnabel is supporting the euro. Chris Turner at ING said Eurozone data have continued to surprise positively, with growth risks potentially skewed to the upside even as energy prices have risen this year.

The note links the outlook to expectations for monetary tightening, citing a projected 25 basis point rate hike in September to 2.5%, followed by another move next year. It also frames EUR/USD as likely to hold support around 1.1650-1.1660.

FXStreet adds that ING’s view sits alongside continued market attention on upcoming US data, including the Personal Consumption Expenditures price index, which could affect dollar pricing. In its discussion of the broader backdrop, the outlet also cites modest US dollar strength tied to profit taking and Middle East uncertainty as EUR/USD holds below the higher 1.1700-1.1710 zone.

Latest closeEUR/USD 1.157 ▲0.4%

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