Search
EN Down
Language
Hi, user_no_name
Live Chat

euro

 

Euro steady above $1.07 as investors look to ECB policymakers for cues 

The euro to dollar rate held a notch above the $1.07 mark on Thursday, stepping back from its seven-week peak of $1.0756 achieved on November 6th, as investors processed recent statements from European Central Bank (ECB) officials.  

Luis de Guindos, ECB Vice President, highlighted the likelihood of a modest contraction or, at best, stagnation in the eurozone's economy in the fourth quarter, and underscored the ECB's commitment to a data-dependent approach.  

On a different note, policymaker Robert Holzmann stressed the importance of remaining vigilant about inflation and remaining ready to raise interest rates when necessary. Market expectations indicate the possibility of the ECB implementing interest rate cuts of around 95 basis points by the end of 2024.  

Breaking a streak of 10 consecutive rate hikes, the European Central Bank opted to keep interest rates unchanged at multi-year highs last month. 

 

Calculate your Forex margin

Calculate your hypothetical required margin for a Forex position, if you had opened it now..

Category

Majors Search
Majors
Minors
Exotics

Instrument

Search
Clear input

Bid

Ask

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down

Leverage

-

Required Margin

$-
Required margin is displayed in instrument currency

Required Margin

$-
Required margin is displayed in selected account currency

Current conversion price:

-
Start Trading

Past performance is not a reliable indicator of future results.

 

Euro forecast: Scotiabank, ING say EURUSD support levels at 1.06 

In his euro forecast on Thursday, Shaun Osborne, Chief Currency Strategist at Toronto-based Scotiabank, wrote that the EURUSD pair may see upward momentum if it passes the 1.0710/1.0720 mark: 

“EUR drift from Monday’s peak may be steadying. Intraday price action reflects firm support for the EUR on dips to the mid-1.06 area over the past couple of sessions. Trend momentum signals remain bullishly oriented on the intraday and daily studies but intraday trend strength has softened. 

Risks remain geared to more EUR strength above while 1.0650/1.0660 support holds. EUR gains should pick up a bit more momentum above 1.0710/1.0720.” 

Chris Turner, Head of Global Markets at Dutch bank ING, said markets were not responding to the ECB’s hints of a further rate hike, and identified a similar EURUSD support level to Osborne: 

“Investors do not seem to be listening to the threat of one last European Central Bank rate hike, where instead 80bs+ of easing is priced in 2024. We doubt ECB speakers today will move the needle on EUR/USD and the best hope of slightly higher spot prices probably comes from the US weekly claims data. 

For today, let's see whether EUR/USD can test decent resistance at 1.0765. Support is set at 1.0650/1.0660.” 

Some institutions, however, remain highly bearish on EURUSD. Major Wall Street investment banks J.P. Morgan and Citibank recently forecast the euro to dollar exchange rate to reach parity by the end of the year due to oil-price-driven inflation and a potential economic slowdown triggered by the ECB’s monetary tightening policy.  

At the time of writing, the euro to dollar rate was mostly trading sideways around the $1.0714 level, as per MarketWatch data. EUR has shed close to 2.5% of its value against the USD in the past three months.  

When considering foreign currency (forex) for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.    

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. 

Latest news

Investors move on small cap stocks as June US inflation unexpectedly soft

Friday, 12 July 2024

Indices

Investors rotate into small caps on soft June US inflation

US earnings season kicks off, ECB expected to hold rates steady

Thursday, 11 July 2024

Indices

Week ahead: US earnings season kicks off, ECB hold expected

Bank of England policymakers suggest BoE may not cut rates in August

Thursday, 11 July 2024

Indices

Bitter pill for Bank of England August rate cut bets

exchange traded fund etf business financial

Wednesday, 10 July 2024

Indices

10 Active ETFs in 2024

Live Chat