ING Research maintains a bearish bias on EUR/USD until the end of the year.
“Energy-related news should be more relevant for the Euro this week, with falling temperatures in Europe and the Russian oil price cap coming into effect today. announced that it would rather cut production than sell at the embargo price. OPEC+ has held production steady and is not expected to meet again until February, but we continue to see risks that a tighter energy market situation in 2023 could lead to higher oil and gas as soon as possible. Given the high sensitivity of the EUR/USD to the Eurozone terms of trade (which is mainly driven by energy prices), further upside risks for energy commodities equal the downside risks for the euro“, notes ING.
“This week, some stabilization in the dollar could falter the EUR/USD rally around the 1.0600/1.0650 area, and possibly lead to a more sustainable decline below 1.0450/1.0500. We remain bearish on the pair until the end of the year,“adds ING.
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