Eurozone inflation prints at 3.8%, fueling ECB rate hike expectations and supporting EUR/USD consolidation toward 1.1350, while USD/CHF gains traction on US equity market weakness.
The EUR/USD pair is finding support as Eurozone CPI is confirmed at 3.8%, significantly exceeding the ECB's target. This data, combined with market expectations for an additional 75 basis points of tightening, provides a bullish backdrop for the Euro, with ING projecting a consolidation trend toward the 1.1340/50 level.
ING sees the pair consolidating toward the 1.1340/50 range.
ING anticipates that USD/CHF will outperform in the current market environment, particularly if there is a deeper correction in US equities. This suggests that the Swiss Franc may weaken relative to the US Dollar as investors react to volatility in the US tech sector.
The pair is expected to be driven by the performance of US equities, with a deeper correction favoring the USD.
Eurozone CPI confirmation at 3.8% reinforces expectations for 75 basis points of additional ECB tightening. ING analysts anticipate the euro will consolidate near 1.1350 as markets weigh persistent inflation against broader US equity market volatility.
The Euro is supported by Eurozone inflation data confirmed at 3.8%, which keeps expectations for 75 basis points of ECB tightening firmly in place.
ING analysts suggest that a deeper correction in US equities would likely lead to USD/CHF outperformance, indicating relative strength for the US Dollar against the Swiss Franc.