EUR/USD: Things are getting increasingly difficult for bulls – Commerzbank

EUR/USD eased after the European Central Bank (ECB) meeting. You-Na Park-Heger, FX Analyst at Commerzbank, expects the pair to trade sideways for the time being.

A more hawkish ECB is difficult to imagine

“It emerged yesterday that things are getting increasingly difficult for EUR bulls. A lot seems to be priced into EUR/USD already, and a more hawkish ECB is difficult to imagine.”

“Currently, it looks as if the inflation trend justifies an end to interest rate hikes in the near future, so there is probably no further upside potential in EUR/USD for the time being.”

“A sideways move in EUR/USD, possibly in the 1.08-1.09 range – which we saw prior to the recent test of the 1.10 mark seems most likely to me for now.”