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ING Sees EUR/USD Risks Despite ECB Hike
Developing
In Short: ING's Francesco Pesole sees downside risks for EUR/USD this week despite an expected ECB rate hike.
ING's Francesco Pesole sees downside risks for EUR/USD this week, despite an additional European Central Bank (ECB) rate hike now expected in December. He maintains ING's EUR/USD year-end target at 1.160.
According to Pesole, the EUR/USD pair faces mostly downside risks this week, especially if Brent crude prices rise or the Federal Reserve's hike odds increase. He notes that similar front-end pricing for EUR and USD, coupled with dovish repricing due to lower energy prices, could slightly boost EUR/USD.
Pesole explains that since both central banks are likely to hike rates just once more this year before pausing, the dovish repricing should be similar in size. He adds that lower USD rates tend to positively impact global risk sentiment.
AUD/USD has been struggling for direction on Monday, coming under fresh downside pressure soon after retesting the 0.7140 area and looking to stabilize in the low 0.7100s ahead of the opening bell in Asia on Tuesday.
Background
Top industry bosses have called for slowing down AI development to mitigate risks to human rights and privacy, amid growing concerns in Washington and the UK.
What's still developing
- USD/JPY is easing back below 157.00 in Asia on Monday, undermined by modest Japanese Yen strength amid looming intervention risks after Friday's BoJ rate check.