European currencies proceed to achieve floor, supported by a rotation out of US belongings, ING’s FX analyst Francesco Pesole notes.
A transfer to 1.150 in EUR/USD appears to be untimely
“Markets may also be partly factoring in final week’s sudden Reuters report that the European Central Financial institution has requested banks to emphasize check their USD funding wants amid considerations the Federal Reserve might limit entry to emergency USD swap traces. Whereas this state of affairs seems considerably unlikely, ought to the chance be deemed credible, it might immediate even quicker diversification away from the greenback.”
“We usually deem c given the shortage of laborious proof on the financial injury within the US from tariffs. To make sure, if the G7 summit fails to supply indicators of commerce de-escalation, and above all, Treasury markets stay beneath stress, one other leg larger in EUR/USD could be inevitable.”
