Title : EUR/USD: Current bounce to stall at 0.9850/9870 – ING
Oct 03, 2022 04:33 AM ET
The EUR/USD maintains last week's gains. Analysts at ING expect the 0.9850/9870 area to put an end to any rally.
Is EUR/USD poised to retest 0.95 this month?
"News that OPEC+ wants to raise oil prices will not be well received across the region. Equally, reports over the weekend suggest that what little remains of Russian gas exports to Europe could also decline in, for example, Italy. As in the UK, attention in the Eurozone is also shifting to the size of fiscal support packages and whether local bond markets can easily digest them.
One could argue that intervention (both in currencies by the Asian authorities and in the bond market by the UK authorities) is causing this pause in the dollar's uptrend. However, the macroeconomic drivers remain firm and the 0.9850/9870 levels could be the limit of the current EUR/USD bounce. A retest of 0.95 in October is likely. "