The EUR/USD pair continues to face downward pressure, as analyzed by experts at ING.
Ignoring ZEW Figures
EUR/USD has experienced a slight decline, which appears to align with short-term differences in interest rates. With a gap of -135 basis points, the two-year EUR:USD swap rate differentials remain at their highest levels for the year.
We anticipate that even a slightly improved German ZEW number today will have minimal impact on expectations regarding ECB rate cuts or the performance of the Euro. It appears that EUR/USD will encounter difficulty in surpassing the 1.0900 mark in the short term.
