- Analytics
- News and Tools
- Market News
- EUR/USD will struggle to sustain a break above 1.10 this quarter – ING
EUR/USD will struggle to sustain a break above 1.10 this quarter – ING
EUR/USD is enjoying some gentle support as investors return from their Easter break. US Core CPI will be the key event of the day and will determine whether the pair has a chance of breaking above 1.10, economists at ING report.
1.10 should prove a tough nut to crack
“Two-year EUR:USD swap differentials are pretty steady at near 100 bps in favour of the Dollar. Perhaps we should not expect too much further narrowing now.”
“Two-year US Treasury yields are already trading at a 100 bps discount to the Fed funds rate, a discount which could move to 125 bps if the Fed hikes in May. Historically, the 125-150 bps marks a deep historic discount for US two-year yields, and much substantial further downside for two-year yields may only emerge when the Fed is ready or has started easing – probably in the fourth quarter.”
“Our base case is that EUR/USD will struggle to sustain a break above 1.10 this quarter.”
“EUR/USD to trade a 1.0900-1.0950 range into the pivotal US CPI release.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
