The EUR/USD pair showed bullish momentum on Tuesday, as short-dated EUR swap rates declined. The stronger euro poses a risk to the ECB’s inflation targets, prompting concerns among policymakers. A failure to break below 1.1910/20 could maintain bullish momentum, with potential targets extending to 1.23/24, ING analysts Chris Turner notes.

Stronger euro raises inflation concerns

“Failure of EUR/USD to break back under 1.1910/20 now keeps bullish momentum intact. In fact, it now looks like Monday’s gap higher could be a very bullish ‘breakaway gap’, which could see the move extend all the way to 1.23/24, as unlikely as that seems.”

“One of the threats to the neutral ECB policy outlook has been the stronger euro. And yesterday’s EUR/USD price action suggests the doves at the ECB might be right to worry that a stronger euro could see the ECB missing its inflation target to the downside.”

Octalas AI

الربح

الجميع يسارعون إلى خفض التكاليف. أما نحن، فنسرع نحو تحقيق الأرباح.

ابدأ البيع من خلال تقديم الخدمات

ابدأ الفترة التجريبية

مجانًا لمدة 14 يومًا · لا حاجة لبطاقة ائتمان