EUR/USD: Strength driven by geopolitical factors – ING

EUR/USD has shown unexpected strength, breaking through major resistance levels due to geopolitical developments and potential dollar sales from Japan. Analysts note that Eurozone PMIs are improving, particularly in Germany, which could support further gains. The upcoming GDP data release is also anticipated to influence the Euro's trajectory. NG Bank Global Head of Markets and Regional Head of Research for UK & CEE Chris Turner reports.

Euro shows unexpected strength

"We had not been expecting this kind of EUR/USD strength this quarter, but it seems the combination of last week's geopolitical developments and potentially large dollar sales from Japan has sent EUR/USD through major resistance at 1.1800/1810."

"Another good reading from the German Ifo index can prove mildly EUR/USD supportive and could drag EUR/USD back to major resistance at 1.1900/1910."

"1.1835 is now the intraday support, and 1.1900/1910 resistance."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)