ING analysts highlight near-term upside for the euro as broad dollar pressure persists, though gains may struggle beyond 1.160 without further USD repricing.
EUR/USD climbed above 1.150 as the dollar faced broad-based selling pressure, despite the euro lagging some G10 peers. Stronger-than-expected Eurozone Q2 GDP growth of 0.4% QoQ and elevated July inflation in Germany and Spain provided limited support.
Eurozone inflation data released today is expected to show headline CPI at 2.9% and core at 2.4%. A September ECB rate hike is largely priced in, limiting further upside for front-end EUR rates unless new catalysts emerge.
ING analysts see near-term risks tilted to the upside for EUR/USD, though a move above 1.160 may require additional dollar weakness or heightened Middle East tensions. Markets await next week’s US economic data for fresh direction.