Rest today, more pressure later? – ENG

Markets remain moderately bearish on EUR/USD in the near term, even as their underlying expectations for a rise in US unemployment should provide some respite today, notes Francesco Pesole, FX strategist at ING.

A break below 1.1000 can drive the EUR to 1.09 relatively quickly

“Finally, less favorable rate differentials, volatile risk sentiment and a turbulent EU budget season mean EUR/USD could remain under pressure. 1.1000 is a big support, so a break lower could mean the correction extends to 1.09 relatively quickly.”

“The euro zone calendar does not include market movement data today, but there are quite a few European Central Bank speakers to watch. After Isabel Schnabel’s relatively dovish tone earlier this week, we can reasonably expect other hawks to bow to the dodgy pressure and stop pushing against an October cut.”