EUR/USD is hovering around 1.160, a level that, in our view, can work as an anchor again today and possibly for a few more days should US CPI fail to add much to the US Dollar (USD) narrative, ING’s FX analyst Francesco Pesole notes.
Next week’s ECB meeting might incidentally be a non-event
“The eurozone calendar only includes consumer confidence data (not market-moving) today, and tomorrow’s PMIs may also have limited spillover into FX. Next week’s ECB meeting will incidentally be a non-event in our view.”
“In the rest of Europe, Scandinavian currencies are performing quite well this week, mostly thanks to their high beta to the recovery in risk sentiment. Incidentally, both Sweden and Norway present a combination of decent growth prospects and low debt that favours rotation into their (undervalued) currencies in periods of market calm.”
“We remain generally constructive on SEK and NOK, even if the short-term picture is more mixed than the medium-term one.”
