EUR: Not a great deal – ING

This time yesterday, we were all focusing on how the US-EU trade deal would remove uncertainty and allow EU businesses to move on, ING’s FX analyst Chris Turner notes.

EUR/USD price action remains very poor

"By the end of the day, investors seemed to have concluded, as did some European leaders, that, net-net, universal tariffs were going to hurt. When the dust settles, the fact that the pharma and semiconductor sectors have been included at the 15% tariff rate (even after trade investigations are released) will probably be seen as a good thing. And Europe will just have to make the best of it – focusing heavily on domestic demand for a change."

"Tomorrow is the main event, where eurozone growth as a bloc is seen falling to flat QoQ from 0.6% in the first quarter. EUR/USD price action remains very poor. And if it can't rally above 1.1600/1625 on any good news today, it could well take out support – both at 1.1555 and 1.1500."