The euro has remained supported against the U.S. dollar as the short-term interest-rate differential between the United States and the eurozone has narrowed again, ING analyst Francesco Pesole wrote in a report.
According to Jin10, Pesole said the EUR/USD pair was getting some support as the U.S.-Iran conflict escalated again. He added that market expectations for European Central Bank rate hikes have cooled, leaving room for eurozone short-end rates to rebound and support the euro.
However, Pesole said this support may be difficult to sustain if energy prices keep rising. He noted that the ECB’s decision-making leadership has recently maintained a cautious stance, and higher energy prices would negatively affect trade conditions.
As a result, he said markets may struggle to price in expectations for more than two ECB rate hikes before the end of this year.
Euro Gains Support as U.S.-Eurozone Short-Term Rate Gap Narrows, ING Says
2026-07-14 08:00:47
Disclaimer:
1. The information provided does not constitute investment advice. Investors should make independent decisions and bear all risks themselves.
2. The copyright of this content belongs to the original author. The views expressed herein are solely those of the author and do not represent the stance or position of this website.
