EUR/USD briefly printed above 1.10 on Monday on the back of the huge Fed easing repricing. As mentioned above, the dollar may recover a bit more ground today, ING’s FX strategist Francesco Pesole notes.
EUR/USD to trade above 1.10 in short term
“EUR/USD briefly printed above 1.10 yesterday on the back of the huge Fed easing repricing. As mentioned above, the dollar may recover a bit more ground today, and we could see EUR/USD slip back to the 1.090 mark.”
“The 2-year EUR:USD swap rate differential is now -100bp after having touched -71bp yesterday. This is huge volatility, but also follows a tightening trend in the spread that started in April (when it was at -160bp). Our short-term models indicate EUR/USD should be trading above 1.10 even if that spread rewidens by another 20bp in favour of the dollar.
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.
Hot
No comment on record. Start new comment.