The EUR/USD currency pair closed below 1.0700 on Thursday, leading economists at ING to believe that it could plunge to the 1.0450/1.0500 zone. This marks a significant temporary downside for the pair, and the two-year EUR/USD swap differential has widened back out to levels last seen in mid-December. This now stands at -150 bps, having narrowed to -110 bps at the start of this month.
Given this, analysts at ING argue that the spread should not narrow in too much more, unless the market believes that the Federal Funds rate will end the year near 5.50%. This suggests that EUR/USD may not have to fall too much more, but the direction of travel is to the 1.0450/1.0500 area. This could be the strongest Dollar level of the year for Eurozone corporates.
Today’s Eurozone calendar is relatively quiet, with the December current account figure being the only significant release. The market appears to be largely ignoring yesterday’s comments from ECB dove, Fabio Panetta, who suggested that the ECB should move in 25 bps rather than 50 bps increments.
Given the current situation, it is difficult to predict how the EUR/USD pair will move in the coming days. However, the two-year EUR/USD swap differential and the comments from Fabio Panetta suggest that the pair could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone. This could be the strongest Dollar level of the year for Eurozone corporates, so it is worth keeping an eye on this situation.
Overall, the EUR/USD pair could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone. This could be due to the two-year EUR/USD swap differential widening back out to levels last seen in mid-December, standing at -150 bps. Furthermore, the market appears to be largely ignoring yesterday’s comments from ECB dove, Fabio Panetta, who suggested that the ECB should move in 25 bps rather than 50 bps increments.
Given this, it is worth keeping an eye on the EUR/USD pair in the coming days, as it could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone. This could be the strongest Dollar level of the year for Eurozone corporates, so it is worth monitoring the situation.
Overall, the EUR/USD pair could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone. This could be due to the two-year EUR/USD swap differential widening back out to levels last seen in mid-December, standing at -150 bps. Furthermore, the market appears to be largely ignoring yesterday’s comments from ECB dove, Fabio Panetta, who suggested that the ECB should move in 25 bps rather than 50 bps increments.
Given this, it is worth keeping an eye on the EUR/USD pair in the coming days, as it could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone. This could be the strongest Dollar level of the year for Eurozone corporates, so it is important to pay close attention to the situation.
Analysts at ING believe that the spread should not narrow in too much more, unless the market believes that the Federal Funds rate will end the year near 5.50%. This suggests that EUR/USD may not have to fall too much more, but the direction of travel is to the 1.0450/1.0500 area. This could be the strongest Dollar level of the year for Eurozone corporates, so it is important to keep track of the pair’s movements.
Today’s Eurozone calendar is relatively quiet, with the December current account figure being the only significant release. The market appears to be largely ignoring yesterday’s comments from ECB dove, Fabio Panetta, who suggested that the ECB should move in 25 bps rather than 50 bps increments. This could be an indication that the EUR/USD pair is likely to experience a temporary downside, potentially reaching the 1.0450/1.0500 zone.
Overall, the EUR/USD pair could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone. This could be due to the two-year EUR/USD swap differential widening back out to levels last seen in mid-December, standing at -150 bps. Furthermore, the market appears to be largely ignoring yesterday’s comments from ECB dove, Fabio Panetta, who suggested that the ECB should move in 25 bps rather than 50 bps increments. This could be an indication that the EUR/USD pair is likely to experience a temporary downside, potentially reaching the 1.0450/1.0500 zone.
Given this, it is important to keep track of the pair’s movements in the coming days, as it could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone. This could be the strongest Dollar level of the year for Eurozone corporates, so it is worth monitoring the situation closely. It is also worth noting that the two-year EUR/USD swap differential and the comments from Fabio Panetta suggest that the pair could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone.
In conclusion, the EUR/USD pair could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone. This could be due to the two-year EUR/USD swap differential widening back out to levels last seen in mid-December, standing at -150 bps. Furthermore, the market appears to be largely ignoring yesterday’s comments from ECB dove, Fabio Panetta, who suggested that the ECB should move in 25 bps rather than 50 bps increments. Given this, it is important to pay close attention to the situation and keep track of the pair’s movements in the coming days, as it could experience a temporary downside, potentially reaching the 1.0450/1.0500 zone.
