According to analysts at ING, EUR/USD are moved towards the 1.0850 level during Monday’s trading session. They provide insights into the pair’s prospects.
EUR/USD Expected to Stabilize Near or Slightly Above 1.0850
In the coming ten days, inflation data for the Eurozone will be released, including the March CPI estimate for the entire Eurozone on April 3. Unless there are significant surprises, market confidence in a rate cut in June (already priced at 21 bps) will likely increase. Consequently, the Euro may underperform compared to other currencies with short positions or higher sensitivity to sentiment once the US Dollar weakens. ING suggests that this scenario could unfold within the next month.
For the current week, EUR/USD is anticipated to resist further downward pressure around the 1.0800 support level and stabilize near or slightly above 1.0850.