ING Bank: Focus on core inflation in the eurozone, euro to fluctuate within a short-term range

(1) ING stated that the euro against the US dollar is pulling back from its overnight high of 1.1260. It is expected to follow the trend of technology stocks today; if technology stocks come under pressure again, this may push the euro higher against the dollar. (2) The bank believes that the 1.1260 to 1.1270 range currently marks the top of the short-term trading interval. (3) Today's focus is the preliminary reading of the eurozone's October Consumer Price Index, with energy prices expected to push the overall year-on-year increase to 4.0%, and core inflation expected to remain steady at 2.5%. (4) According to the bank, if there is an unexpected uptick in core inflation, this should be favorable for the euro, and short-term euro swap rates are likely to rise, as the market sees that the European Central Bank will need to do more than just precautionary interest rate hikes.