ING analysts expect EUR/USD to consolidate near 1.12 as European investors favor Dollar cash over Euro exposure, despite recent volatility in US equity markets.
ING's Chris Turner calls the euro's performance unimpressive: even a large US tech sell-off failed to trigger EUR/USD buying because European investors keep cash in Dollars. Barring a soft US jobs report today, EUR/USD is expected to consolidate near 1.12, capping upside for holders.
ING expects EUR/USD to consolidate not far from 1.12, unless today's US jobs report comes in soft.
Because global investors, including the European buy-side with low hedge ratios, are rotating into cash but keeping it in Dollars rather than leaving the Dollar.
ING notes EUR/GBP has overshot rate differentials down at low 0.83 levels, but sees no reason to expect an upside correction just yet. Holders of the pair should not anticipate a rebound in the near term despite stretched levels.
ING says the pair has overshot rate differentials, but there is no reason to expect an upside correction just yet.
The Euro struggles to gain momentum against the US Dollar despite a significant sell-off in US tech stocks. ING analysts report that global investors are rotating into cash while maintaining Dollar positions, effectively capping upside potential for the pair. Barring a soft US jobs report, the currency is expected to remain range-bound near 1.12.
Global investors are rotating into cash but choosing to hold that cash in Dollars rather than converting it back into Euros.
ING expects the pair to consolidate near 1.12, provided that the upcoming US jobs report does not come in significantly soft.