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ING sees EUR/USD stabilizing, targets levels above 1.140

The ING FX strategist points to September Eurozone inflation and ECB communication as the main near term catalysts, with core inflation expected to edge up to 2.5%.

Reported · Written up by our desk · Major Pairs

ING FX Strategist Francesco Pesole argues EUR/USD should trade above 1.140, saying recent Euro weakness looks somewhat overdone and that broader market moves in bonds, equities, and oil argue against a more aggressive dollar rebound.

He highlights September Eurozone inflation as the key focus, with country releases starting and eurozone wide numbers due Friday, and expects headline CPI to accelerate on energy prices.

Pesole expects core inflation to rise only 0.1 percentage point to 2.5%, adding that he does not expect the data to push the ECB to a clearly more dovish stance, even if policymakers remain attentive to energy related risks.

Latest closeEUR/USD 1.139 ▲0.1%

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