Watch: Why we still think EUR/USD can reach 1.20
One of the biggest questions we get from clients is how we can be so constructive about the euro, despite what’s going on with Iran, the US, and the subsequent oil and gas shocks. ING’s Francesco Pesole explains our FX team’s thinking.
Read more in our latest FX Talking here
Why we still think EUR/USD can reach 1.20
We still think, despite everything, that the euro can rise to 1.20 against the dollar this year. Our FX Strategist, Francesco Pesole, says our team believes the Fed will look through this inflationary ‘bump’ driven by rising oil and gas prices and will cut rates twice again this year. And that will have an amplified effect on EUR/USD for several reasons. And while oil prices are set to remain elevated, we don’t see the same risks for gas in Europe. So, the euro may trade lower in the short term, but should recover fairly strongly.
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
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