Investing in the Resilience Boom

2026 Midyear Investment Outlook

FX Talking: Weatherproof markets

The desk interprets market resilience as a significant indicator of future price stability, highlighting that such weatherproofing may help shield currencies from external shocks. Per the full note from ING Economics, the desk points out the persistent demand in risk-related assets as a clear signal of strength. As we head into the next quadrant, this resilience could support a bullish outlook on select currency pairs, particularly in a landscape where consistent monetary policies are observed. Therefore, traders may seek to capitalize on these trends given the lack of immediate high-impact events on the horizon.

Innovative financing: a powerful tool to unlock investments as a force for good

The desk believes that the growing integration of ESG metrics into capital allocation will continue to drive sustainable financing and impact investing trends, as highlighted in the recent commentary from Standard Chartered. This trend is underscored by the outperformance of ESG asset classes compared to traditional investments, suggesting a significant shift in investor priorities. With our consensus target for the EUR/USD at 1.075, market participants should remain vigilant about how these trends influence currency flows. Per the full note [source], the acceleration of sustainable finance is not just a passing phase but a fundamental change in investment philosophy.

FX Daily: Remarkable resilience of risk assets

The desk interprets the current resilience of risk assets as a positive signal for broader market stability, which may encourage a bullish stance in the FX space. Per the full note from ING Economics, this sentiment is largely attributed to ongoing recovery trends, particularly in equities, suggesting that traders are willing to embrace risk despite recent market volatilities. This positioning reflects a belief in stable economic prospects, likely bolstered by central bank policies aiming to maintain liquidity. With no high-impact events occupying the next 30 days, the current environment provides a conducive backdrop for risk assets to thrive.