EUR/USD could quite easily see move back towards the 1.0550/1.0500 zone – ING

EUR/USD stays relatively quiet below 1.07 early Thursday. Economists at ING expect the world’s most popular currency pair to move back lower towards the 1.0550/00 area.

ECB seems to be using the prospect of aggressive tightening to support the EUR

“EUR/USD looks to have stalled at the top of a potential 1.02-1.08 trading range and we could quite easily see a near-term move back towards the 1.0500/1.0550 area as the Fed cycle is repriced higher.”

“We struggle to see the ECB ‘out-Fedding’ the Fed when it comes to tightening – even though the ECB seems to be using the prospect of aggressive tightening to support EUR/USD.”

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