Dining out on the softer USD – ING

EUR/USD has held onto its gains this week – though that largely looks a function of the slightly softer dollar, ING’s FX analyst Chris Turner notes.

Softer US data is needed to justify a move well above 1.16 now

“Yesterday’s release of the German ZEW expectations index for November was not particularly encouraging. However, the aggregate ZEW figure for the eurozone as a whole ticked up, questioning whether Germany is increasingly becoming an outlier.”

“There is no eurozone data of note today and the focus will be on ECB speakers. Here, Isabel Schnabel is speaking at 1230CET on the subject of: ‘Europe Reimagined: The Path to Empowerment’. This sounds like a global euro kind of speech with a call for particular European politicians to reduce fragmentation in the eurozone and pursue policy reforms.”

“We’re happy that EUR/USD is trading closer to 1.16 than 1.15, but will probably require some softer US data to justify a move well above 1.16 now.”