ING does not recommend counting on the growth of the euro above 1.2170

The European Central Bank yesterday failed to demonatize the euro bulls by its statement that the high volatility of the exchange rate leads to an increase in uncertainty, and also potentially tightens the financial conditions. According to ING analysts, bulls on the euro did not see for themselves a direct threat in the regulator’s statements that he follows the dynamics of the currency. This means that they will calmly continue to check the ECB’s patience for durability. “However, let’s not forget that the Central Bank uses inflation as the main reference point for its forecasts. Therefore, most likely, a sharp increase in the euro / dollar above 1.20 towards 1.25 will bring us closer to the ECB’s pain threshold (other things being equal, of course). If the Central Bank continues to worry about deflation in the near future, the upward trend in the euro is likely to be limited to 1.2160 / 70, which coincides with a 50% correction in the fall in 2014-2017. ”

In addition, the growth of the euro recently due largely to positive macroeconomic statistics, but the good news for the most part is already embedded in the price, so moving forward will be more difficult. In the future, the history of the euro’s growth may be more due to the negative for the dollar, and bearish dynamics weakened by Brexit pound

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