EUR/USD Eyes 1.15 Target as Fed Announcement Looms Large

Financial markets are looking to the Federal Reserve's announcement for clues on interest rates, and according to ING's Francesco Pesole, it could push EUR/USD towards the 1.150 target.

The Fed's decision is seen as a key factor in determining the value of the euro against the US dollar, with many expecting no further hikes from either the Fed or the European Central Bank (ECB).

This could lead to dovish repricing in both EUR and USD curves, putting a floor under EUR/USD and potentially benefiting from lower energy prices.

However, Pesole notes that below 1.150, the risks become more balanced from a technical/short-term valuation perspective, with short-term rate differentials not accommodating big moves lower.