Looking at 1.11 until the end of the week – ING

The US presidential debate did not generate any shock waves for EUR/USD, but provided enough short-term support for the pair to send it back to 1.105 after yesterday’s session, notes ING FX strategist Francesco Pesole.

EUR/USD may return to 1,110

“The coming days will help shape currency reaction to the debate more clearly, but we were broadly positive on EUR/USD holding support in the US election, and the perceived increasing likelihood of Harris winning supports that view .”

“Looking ahead to this week, EUR/USD will still be heavily influenced by today’s US events as the US CPI is released and markets could place more US election trades, but tomorrow will be all about the ECB meeting. A 25bp rate cut is almost guaranteed, but as discussed in the ECB Cheat Sheet, there is room for EUR/USD to trade higher amid a nasty repricing of EUR rates early on.”

“By the end of the week, the net effect of the presidential debate, US CPI and the ECB announcement could have sent EUR/USD back to 1.110 in our view.”