A break below 1.0700 could swiftly shift market focus towards the 1.0500 target – HSBC

Economists at HSBC analyze how the ECB’s upcoming March meeting could impact the EUR/USD and EUR/GBP.

EUR/GBP may breach the 0.8500 mark on a dovish ECB turn 

In the EUR/USD pair, the 1.0700 level serves as crucial support, with potential upward movement capped at 1.0930 in the absence of significant ECB language changes. A break below 1.0700 could swiftly shift market focus towards the 1.0500 target.

In the case of EUR/GBP, a dovish turn from the ECB might trigger an attempt to breach the 0.8500 mark.