EUR/USD: Frustratingly stable – ANZ

Research Team at ANZ, suggests that the EUR/USD has remained sandwiched in its established 1.05-1.15 range for the past six months, oscillating with risk appetite in asset markets.

Key Quotes

“In an environment of equivalent growth data, the conflicting merits of current account dynamics vs inflation performance are neutralising influences.

The UK’s EU referendum and ECB’s negative interest rate policy are weighing on the euro, but appetite for a stronger USD has receded with reduced US interest rate expectations.

Nevertheless, risks to the current period of stability exist, but the future direction EUR/USD takes will very much depend on business cycle dynamics and the oil price.”