EUR/USD Rally Likely to Stall Below 1.16, ING Says
ING strategist Francesco Pesole warns that EUR/USD rallies are likely to fade below 1.16, citing a lack of strong bullish drivers for the euro, ongoing doubts about further ECB rate hikes, and headwinds from softer inflation and low oil prices.
According to ING's Francesco Pesole, the euro's recent price action following the US jobs report underscores the absence of a convincing bullish narrative. Markets remain skeptical about additional rate hikes from the European Central Bank, capping any upside momentum.
Additional weight on the single currency comes from softer inflation readings and persistently low oil prices, which together dampen the outlook for eurozone growth and monetary tightening. ING suggests that any EUR/USD rally will struggle to sustain above the 1.16 level against the US dollar.
Source: FXStreet Forex News