Market news
03.02.2025, 09:47

EUR: A clean negative – ING

The growing prospect of a global trade war and tariffs heading towards the EU is a clean euro negative, ING’s FX analysts Chris Turner notes.

There is now an upside gap to 1.0350

“Those important two-year EUR:USD rate differentials have widened around 20bp over the last couple of sessions as investors price less easing from the Fed and more easing from the European Central Bank. This plus the increased risk premium for a global trade war saw EUR/USD touch a new cycle low of 1.0140 in early Asia.”

“There is now an upside gap to 1.0350, but that only gets filled if there is some rapprochement in North America today or equities fall hard enough to prompt some wide-scale deleveraging of positions to a market very long the dollar already.”

“Presumably tough talk from Europe that it will not be pushed around will be seen as a euro negative. And as above, the threat of a major report in April to justify US universal tariffs will see investors retain a sell-rally mindset in EUR/USD.”

© 2000-2025. 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.

AML Website Summary

Risk Disclosure

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.

Privacy Policy

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.

Feedback
Live Chat E-mail
Up
Choose your language / location
Click Subscribe to receive notifications about promotions and bonuses