EUR/USD:Market Risks Weigh on Exchange Rate, says ING

According to economists at ING, the Euro to US Dollar exchange rate (EUR/USD) is likely to be primarily driven by the US Dollar in the near future. The pair may see a surge above the 1.1000 level, but the economists believe that it will be challenging to sustain any further gains.

The economists note that if the ISM services reading comes in below consensus, it could trigger a break above the 1.1000 level. However, they caution that the sustainability of rallies beyond that point would need to be tested against the market's confidence to consistently unwind defensive dollar positions. This is particularly important given the ongoing risks of fresh financial turmoil and tighter liquidity.

Looking to the European Central Bank (ECB), several key members of the ECB Governing Council, including Boris Vujcic, Bostjan Vasle, and Chief Economist Philip Lane, are scheduled to speak. While there is always a risk of surprise remarks by ECB officials, the economists believe that these risks have moderated recently, as most key speakers have aligned themselves with a pledge to keep raising rates, in line with their position on the dovish/hawkish spectrum.

In conclusion, while the EUR/USD pair may see a temporary surge above 1.1000, it is unlikely to sustain further gains without the market's confidence in consistently unwinding defensive dollar positions. Furthermore, ongoing risks of financial turmoil and tighter liquidity add to the uncertainty surrounding the pair's future movements.

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✅ Yesterday Entry , Price still in profit. Today We may Approach a pullback before touch the 1.10 Value.