Postponement today, more pressure later? – ING

Markets remain moderately bearish against the EUR/USD in the short term, even though their baseline expectation for a rise in US unemployment today should provide some respite, notes ING’s currency strategist Francesco Pesole.

A break below 1.1000 could push the EUR towards 1.09 relatively quickly

“Ultimately, less supportive interest rate differentials, instability in risk sentiment and a turbulent EU budget season mean the EUR/USD could remain under pressure. 1.1000 is major support, so a break lower could mean the correction extends relatively quickly to 1.09.”

“The Eurozone calendar has no data on market movements today, but there are quite a few speakers from the European Central Bank to watch. After Isabel Schnabel’s relatively dovish tone earlier this week, we can reasonably expect that other hawks will give in to the softening pressure and no longer oppose a cut in October.”