EUR/USD stabilized and even managed to rise after the blows from Draghi last week. What’s next?
Here is their view, courtesy of eFXdata:
ING Research discusses EUR/USD outlook and expects a scope for the pair to consolidate this week.
“Following the close to three big figure decline after the ECB meeting, we expect EUR/USD to stabilise as (a) the bulk of the adjustment in response to the dovish ECB interest rate forward rate guidance is likely behind us (the market is now pricing in a full 10 basis point deposit rate hike only by the very end of 2019, which is in our view overdone) and; (b) the EUR/USD trades with a persistent 3% risk premium (vs its short-term fair value of 1.20),” ING argues
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