EUR/USD advanced on hawkish comments by Nowotny and held onto its gains despite the ECB disowning them. What’s next?
Here is their view, courtesy of eFXnews:
ING Research discusses EUR outlook and maintains a structural bullish bias targeting EUR/USD at 1.25 in Q2, 1.28 in Q3, and 1.30 by year-end.
EUR received a lift from an upbeat speech from President Draghi on the EZ economic outlook yesterday (noting ‘the pace of economic expansion to remain strong’).
While this does not change much about the ECB’s PPP approach (patient, persistent and prudent) to the monetary policy stance as well as its voiced concerns about the threat of trade wars (and its risks to the economic outlook) it nonetheless points to the ongoing ECB policy normalization, which should translate into medium-term EUR upside,†ING argues.
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