European currencies on the whole are having fun with good momentum, with the Swiss franc and the Swedish krona on high of this week’s G10 scorecard, ING’s FX analyst Francesco Pesole notes.
The subsequent key stage is 1.150
“It is a testomony to markets wanting each for USD alternate options (CHF) and probably enjoying some optimistic views on a Ukraine-Russia peace deal (SEK, NOK). The euro can draw advantages from each of those storylines, whereas the franc is liable to a positioning-exacerbated correction ought to a truce in Ukraine be reached.”
“On the home aspect, there’s nonetheless little or no driving the euro for now. We now have just a few European Central Financial institution audio system to look at, together with Chief Economist Philip Lane, however the Governing Council’s stance has been reasonably lenient in the direction of market pricing of late, and markets ought to maintain cementing expectations for 2 cuts this yr, leaving little room for EUR short-term swap fee mobility.”
“We predict some USD-positive headlines on commerce coming from the G7 summit in Canada can put a lid on EUR/USD earlier than the tip of the week. The subsequent key stage is 1.150, however markets might wish to again such a stage with softer US information and maybe a extra optimistic story on Russia-Ukraine. For now, it appears a bit untimely, and we want 1.130 as a near-term goal.”
