Analysts at ING offer their outlook on the EUR/USD pair for the coming months, in light of the US-Eurozone growth differential.
Key Quotes:
“While EUR/USD may have found an interim stabilising point above the 1.15 level – to truly gauge what the next big 5 figure directional move will be, one needs to make an assessment on whether the median expected US-EZ growth differential diverges even further – or in fact starts to show fresh signs of converging again.
The latter is the most compelling to us at this stage – with exuberant US growth expectations getting moderated as the cost of Trump’s trade war take its toll on the domestic economy
We’ve flat-lined our EUR/$ forecast at 1.17 for the coming months – but we’re now pretty much watching out for any clear incipient signs that shed light on which way the median US-EZ growth differential is heading.”
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