Euro: Gradual recovery from Warsh sell-off against US Dollar – ING
ING’s Chris Turner writes that EUR/USD is grinding higher as markets reverse the earlier sell-off triggered by Kevin Warsh’s speech, with the pair moving back toward 1.1650. A softer Dollar backdrop versus EMFX and pro-growth G10 currencies supports the Euro.
ING analyst Chris Turner notes that the EUR/USD exchange rate is gradually recovering after a sell-off triggered by Kevin Warsh's speech. The pair is currently moving back towards the 1.1650 mark. A softer dollar environment against emerging market currencies and pro-growth G10 currencies is providing support for the Euro. Turner also mentions potential risks to the Euro due to Germany's upcoming local elections, where a strong performance by the AfD could raise concerns about the stability of Friedrich Merz's government.
Meanwhile, EUR/GBP is consolidating after breaking above the 0.86 level, with a possible upward movement to 0.87 by the end of the fourth quarter. The BoE's potential interest rate hikes and the UK's fiscal situation may influence EUR/GBP's trajectory.
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