EUR/USD: STILL FACES DOWNSIDE RISKS – ING
The French election resulted in a hung parliament, a somewhat unintuitively pro-market result. The Euro (EUR) still faces downside risks during tricky coalition talks and given longer-term fiscal concerns, ING’s FX strategist Francesco Pesole notes.
EUR/USD is set for some selling this summer
“The French election resulted in a hung parliament, a somewhat unintuitively pro-market result. But given fiscal concerns, markets had a preference for Marine Le Pen’s alliance over the left-wing group to win more seats. The euro still faces downside risks during tricky coalition talks and given longer-term fiscal concerns.”
“So, if you are searching for a star performer, look elsewhere than the euro. Aside from political uncertainty, eurozone activity surveys are starting to lose steam; and an ECB that relies on its own (optimistic) inflation projections can still cut twice in 2024.”
“We believe any US-macro-driven rally close to 1.10 will offer opportunities for strategic EUR/USD selling this summer.”
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.