Economists at ING discuss EUR/USD outlook.1.05/1.07 to prove the base for a push towards 1.15 in the third quarter
“There were reports in the market yesterday of some upside interest in EUR/USD going through the FX options market. We can see why. 1.0700 is a decent support area for EUR/USD and we do see the outside risk of a break to 1.0500. However, the eurozone terms of trade story is so much better than it was last summer and that is why our medium-term models identify EUR/USD as very under-valued.”
“Our view is that 1.05/1.07 proves the base for a push towards 1.15 in the third quarter, once clearer signs of US disinflation and slowing activity become a lot clearer.”“Expect EUR/USD to stay soft near 1.0700/0720 and perhaps take a decisive turn on the release of the US inflation data.”
GBP/USD holds gains toward 1.2350 after mixed UK Retail Sales data
GBP/USD is holding its recovery gains toward 1.2350 after the UK Retail Sales data came in mixed for April. Cable is advancing as the US Dollar is losing ground amid a correction alongside the US Treasury yields. Focus now shifts toward the US PCE inflation data.
GBP/USD News
EUR/USD climbs to near 1.0740 as ECB to raise rates further despite German recession
The EUR/USD pair has climbed above the critical resistance of 1.0740 in the early European session after a firmer recovery from near the round-level support of 1.0700. The major currency pair is anticipated to extend further as the US Dollar Index (DXY) has extended its correction further to near 104.08.
EUR/USD News
Gold recovers further from two-month low, climbs back above $1,950
Gold price attracts some buyers in the vicinity of the 100-day Simple Moving Average (SMA) and stages a modest recovery from the $1,937-$1,936 area, or over a two-month low touched the previous day.
<a href=”https://clicks.pipaffiliates.com/c?m=7670&c=503446″><img src=”https://ads.pipaffiliates.com/i/7670?c=503446″ width=”120″ height=”600″ /></a>
Free Forex Signals 