EUR/USD made a move to the upside, topping the 1.07 temporarily. ECB related events are behind the move. What’s next? The team at NAB has some doubts.
Here is their view, courtesy of eFXnews:
The EUR has been holding its own in the face of Fed-speak-inspired USD gains, thanks to a re-pricing of ECB policy following last week’s meeting, notes NAB Markets Research.
“We’d now need to see a combination of further ECB re-pricing alongside a further significant improvement in second-round polling predictions for French Independent candidate Macron in order pull EUR/USD as high as 1.08,” NAB argues.
However, NAB doesn’t expect a decisive break up through the 1.08-1.09 resistance area arguing that this would likely require a renewed weakening in the USD’s part.
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