EUR: Narrower rate spreads, but tariff threat dominates – ING
Source Fxstreet
EUR/USD remains fragile as US rates remain relatively firm, higher US Treasury yields undermine risk conditions and US tariff threats loom large, ING FX analyst Chris Turner notes.
More EUR/USD consolidation on a quieter day
“EUR:USD two-year swap rate differentials are actually narrowing a little in favour of the EUR/USD, but this week has proved that any EUR/USD gains can quickly be wiped out by the US trade story.”
“German November industrial production has come in a little better than expected today but is unlikely to move the needle for EUR/USD. Equally, a bounce back in eurozone November retail sales (11CET today) will not help much either.”
“Look for some more EUR/USD consolidation on what should be a quieter day. 1.0290-1.0330 may well be the extent of the EUR/US range.”
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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EUR/USD: Below 1.0255 before further losses can be expected – UOB GroupInstead of declining further, EUR is more is likely to trade in a 1.0275/1.0355 range. In the longer run, EUR has to break clearly below 1.0255 before further losses can be expected, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
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