Euro: Softer CPI may unlock 1.1600 against US Dollar – ING - tmgm.com
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Euro: Softer CPI may unlock 1.1600 against US Dollar – ING tmgm.com
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FX Daily: A busy week ahead
ING expects EUR/USD to climb back to 1.15 in July, arguing that US payrolls above 100k are already priced in and further USD rallies should be faded. The desk sees ECB's Sintra forum as unlikely to deliver a dovish tilt ahead of Thursday's CPI test. Consensus for EUR/USD at Dec-26 is 1.2000, with a wide range from 1.1200 to 1.2500, placing ING's call near the upper end. The key catalyst is Friday's payrolls and any escalation in Gulf risk could upend this view.