EUR/USD: Hungarian political developments provide short-term backing – ING
EUR/USD Holds Steady Amid Oil Price Surge and Hungarian Election Results
Chris Turner from ING reports that the EUR/USD currency pair faced downward pressure in Asian trading due to rising oil prices following unsuccessful peace negotiations. Despite this, the pair remains above the 1.1600 mark. Turner points out that Hungary's recent pro-European Union election outcome is a positive factor for the Euro, and he considers 1.1700 to be a stable target in the short term. Expectations for a European Central Bank rate hike in June continue to be strong.
Hungary’s Pro-EU Shift and ECB Outlook
There are a couple of reasons why energy prices haven't climbed further and equity markets haven't dropped today: firstly, the Iranian delegation participated in talks in Islamabad, and secondly, the region has so far avoided renewed attacks on energy infrastructure, preventing lasting damage.
Turner notes, "EUR/USD came under pressure in Asia as oil prices jumped after peace talks failed. However, since the parties involved have not resumed destruction of energy facilities, the situation could have been more severe."
He adds, "This is why EUR/USD isn't trading closer to 1.1600. Additionally, developments in Hungary are likely helping to limit further declines. The strong pro-EU stance among Hungarian voters is encouraging news for Brussels and may cause Euro-sceptic parties across Europe to reconsider their positions."
"Unless energy prices surge again today, we believe EUR/USD will find support around 1.1700 in the near term. The economic calendar is relatively quiet, but Luis de Guindos will be the first of several European Central Bank officials to speak this week."
"It may be premature for the ECB to completely dismiss the possibility of an April rate hike, though it appears unlikely. However, market expectations for a June rate increase remain firm, with 22 basis points currently priced in."
(This article was produced with assistance from an AI tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Microsoft (MSFT.US) 365 services experience second major outage this year, affecting multiple government agencies and enterprises worldwide
Despite a "partial recovery," the latest Microsoft service outage continued into Asia-Pacific business hours.
Nvidia (NVDA.US) New CEO Candidates and Market Predictions: Trump Nominates Cook as Successor
As the successor remains uncertain, external voices have already begun to "make choices" for Nvidia.
Safe haven halo fails? US Treasury sell-off returns, Wall Street just breathed a sigh of relief and is startled again
Just as global bond investors began to believe that the worst phase of this year's sell-off had passed, the surge in U.S. Treasury yields has forced them to reassess that judgment.
Before the Jensen Huang scandal broke out, the Quant King precisely cleared out Nvidia!
The latest 13F filing shows that quantitative giant Renaissance Technologies almost completely sold off its holdings in Nvidia (reduced by 99.7%), Meta (reduced by 99.9%), as well as other tech giants like Apple and Amazon in the third quarter, and significantly reduced its position in Palantir. At the same time, it heavily increased its holdings in Micron Technology (up by 618.7%), AMD, and SanDisk, as well as other storage and chip stocks.
Crypto prices
More
