ING Research discusses its bias on EUR/USD this week.
“The highlight of the eurozone data calendar this week will
be November price data – released for Germany tomorrow and for the
eurozone on Wednesday. The question is whether inflation will
fall back from the highs (not far from 11% year-on-year) and allow the
European Central Bank to potentially soften its hawkish rhetoric a
little. Currently, the market prices a 62bp rate hike on 15 December,”
ING notes.
“EUR/USD is consolidating at higher levels – having been buoyed by
the 20% recovery in European equity markets amidst declining energy
prices. Equally, business confidence has been holding up a little better
than expected. We cannot rule out EUR/USD trading back up to
the 1.0480/1.0500 area again (though the reasons for that are far from
obvious) but reiterate that the second half of the week could
potentially push EUR/USD back to the 1.02 area,” ING adds.
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