EUR/USD, GBP/USD: Crude calling the shots into ECB and BoE
Original excerpt
The impact from the ECB and BoE monetary policy decisions later today may prove fleeting if it runs counter to what's happening in energy markets, with both EUR/USD and GBP/USD effectively trading as proxies for crude right now rather than rate differentials.
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Euro languishes near three-month lows against US Dollar despite progress in US-Iran talks
EUR/USD weakness persists despite risk-on conditions from Iran talks, suggesting USD strength is driven by macro fundamentals rather than risk sentiment.
Euro: Policy divergence supports against US Dollar – Rabobank
ECB-Fed policy divergence cited as structural EUR/USD support; widening rate differentials may limit dollar strength near-term despite US growth resilience.
Euro: Test of 1.140 seen before recovery against US Dollar – ING
ING positioning for EUR/USD test of 1.140 signals near-term dollar strength before mean reversion; watch for support breaks that could accelerate dips.
Euro weakens against US Dollar as hawkish Fed bets hog limelight
Market repricing Fed hold probability higher amid hawkish rhetoric, widening rate differential favoring USD/EUR longs.
Bank desks on this topic
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