The recent US presidential debate had little impact on the EUR/USD pair, but it provided some short-term support, pushing it back to 1.105, according to ING’s FX strategist Francesco Pesole.
What’s Next for EUR/USD?
As we look ahead, the FX reaction to the debate will become clearer in the coming days. ING remains optimistic about EUR/USD being supported leading up to the US election, especially with the increasing likelihood of Harris winning.
This week, the focus will be on US events, with the release of US CPI today and potential market movements based on election expectations. Tomorrow, all eyes will be on the ECB meeting, where a 25bp rate cut is expected. However, there is a chance for EUR/USD to trade higher due to a hawkish repricing of front-end EUR rates.
By the end of the week, the combined impact of the presidential debate, US CPI data, and the ECB announcement could drive EUR/USD back up to 1.110, according to ING’s analysis.
Analysis:
The EUR/USD pair may see a potential rise to 1.110 following the recent US presidential debate. With ongoing market events and central bank actions, such as the ECB meeting and US CPI release, there are opportunities for the pair to fluctuate. It’s essential for investors and traders to stay informed and monitor these developments to make informed decisions about their finances and investments.