EUR/USD showed signs of strength yesterday, with support levels expected to remain steady in the beginning of September. The 2-year EUR:USD spread is also tighter than previous months, providing a technical argument against bearish bets on the currency pair, according to ING’s FX strategist Francesco Pesole.
Expect EUR/USD to Maintain Above 1.10 in the Short Term
Despite concerns about Germany’s economic stagnation, recent political developments have reassured investors. With other German parties united against the far-right AfD, the political landscape appears stable for now. However, the ruling coalition’s weakness and potential EU budget issues could impact the Euro in the future.
For now, those anticipating EUR/USD to stay above 1.10 will find comfort in the current support levels, especially with key US data releases on the horizon. While the eurozone’s data calendar is quiet today, attention is on ECB speaker Joachim Nagel from Germany.
Analysis:
The EUR/USD pair is currently showing resilience, with support levels holding strong despite economic and political uncertainties. Investors remain cautious but optimistic, as recent events have provided some reassurance. Keeping an eye on key data releases and political developments will be crucial in understanding how the currency pair may be affected in the coming weeks. Overall, maintaining a bullish outlook on EUR/USD above 1.10 could prove to be beneficial for traders and investors in the short term.