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Euro faces headwinds from ECB rate uncertainty, HSBC says

HSBC points to Europe’s higher sensitivity to elevated energy costs and weaker September data as added pressure on EUR/USD.

Reported · Written up by our desk · Major Pairs

HSBC says the euro is facing mounting headwinds from both monetary policy uncertainty and energy market pressures, weighing on EUR/USD performance.

In the bank’s view, the key risk is how the European Central Bank will handle rates compared with a potentially more hawkish Federal Reserve, alongside Europe’s greater exposure to elevated energy costs.

HSBC also cites disappointing September data and ongoing concerns around regional growth as additional challenges for the euro.

The FXStreet piece notes that this backdrop comes as US yields remain near multi-year highs and supports a stronger US dollar, a factor that can further weigh on EUR/USD.

Latest closeEUR/USD 1.139 ▲0.1%

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