EUR: Narrower rate spreads, but tariff threat dominates – ING

EUR/USD remains fragile as US rates remain relatively firm, higher US Treasury yields undermine risk conditions and US tariff threats loom large, ING FX analyst Chris Turner notes.

More EUR/USD consolidation on a quieter day

“EUR:USD two-year swap rate differentials are actually narrowing a little in favour of the EUR/USD, but this week has proved that any EUR/USD gains can quickly be wiped out by the US trade story.”

“German November industrial production has come in a little better than expected today but is unlikely to move the needle for EUR/USD. Equally, a bounce back in eurozone November retail sales (11CET today) will not help much either.”

“Look for some more EUR/USD consolidation on what should be a quieter day. 1.0290-1.0330 may well be the extent of the EUR/US range.”

Jan 9, 2025

EUR/USD: Below 1.0255 before further losses can be expected – UOB Group

Instead of declining further, EUR is more is likely to trade in a 1.0275/1.0355 range. In the longer run, EUR has to break clearly below 1.0255 before further losses can be expected, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

GBP/USD: Significant support level at 1.2300 can be out of reach – UOB Group

The Pound Sterling (GBP) is likely to decline; the significant support level at 1.2300 could be out of reach. In the longer run, risk has shifted to the downside but note that there is a significant support level at 1.2300, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.