EUR/USD: To Struggle To Break 1.1575 For Now; EUR/GBP: A Move To 0.90-92 Invincible Over Summer
NAB Research discusses its tactical views on EUR/USD and EUR/GBP.
“We don’t currently see the ECB moving at the 25 July meeting, meaning nothing until the September meeting. That continues to leave the focus on Fed easing and for now a weaker USD. We suspect EUR/USD will struggle to break 1.15-1.1575 for now, meaning the DXY index is likely to find support around the 94 June 2018-19 range floor,” NAB notes.
“With the USD on the back foot for the coming weeks, GBP/USD can hold its own, but that will leave EUR/GBP sideways to higher. A move in EUR/GBP up to between 0.90-0.92 looks inevitable over the summer given the worsening political backdrop,” NAB adds.