ING expects the euro to stabilize around 1.14-1.15 as the ECB’s upcoming decisions offset recent Fed-driven volatility.
EUR/USD tested 1.1500 following the Federal Reserve’s hawkish stance but is unlikely to break lower, according to ING. The bank forecasts a summer range floor of 1.14-1.15, citing expectations that the Fed will pause rate hikes.
The European Central Bank’s upcoming policy decisions will now drive euro movements, with markets weighing potential hikes in July or September. Meanwhile, the Swiss National Bank’s neutral stance may support a drift in EUR/CHF toward 0.9250, aided by higher global rates and Middle East developments.