EUR/USD: EU political risks and ECB aggressive pricing drive the market

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Euro (EUR) traded little changed, was last seen at 1.0532 levels.

Euro traded little changed, was last seen at 1.0532 levels. This week, EUR may continue to see more volatility because of the political risks in Germany and the upcoming ECB meeting on Thursday, OCBC’s FX analysts Frances Cheung and Christopher Wong note. Classic inverted head & shoulders pattern on charts “Daily momentum is mild bullish but rise in RSI slowed.

But in the event, he fails, then Germany is likely to make way for elections on 23 Feb 2025. Far right AfD is calling for Germany to leave the European Union, the EUR and Paris climate deal as the party prepares for early elections in Feb-2025. The concern here is the explicit language to quit EU unlike its manifesto ahead of the European parliament elections previously in Jun-2024.” “On Thursday, ECB meeting takes centre stage.

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