ING’s Francesco Pesole says calmer markets are allowing the Euro (EUR) to pause against the strong US Dollar (USD), with AI-related sentiment now the main driver for EUR/USD.
He expects that if risk stabilisation continues and equities firm, the pair could slowly return toward 1.1400
ING’s baseline view is that EUR/USD holds above 1.1300, conditional on steady risk sentiment. Euro pair seeks firmer technical base “Calmer markets are allowing several currencies to take a breather against the strong dollar. If sentiment keeps stabilising from here, data and Fedspeak should take over as primary drivers.
Today, we expect decent US spending figures, but a muted core PCE. Our baseline view is that EUR/USD won’t break below 1.1300″ “EUR/USD is stabilising after a long sell-off, with AI-related sentiment now being the primary driver of the pair. Further stabilisation in equities could see a slow return to 1.1400.” “Domestically, the German IFO printed above consensus yesterday, offsetting Tuesday’s poor PMIs, but markets have continued to gradually scale back some ECB easing.