Euro Eyes Rebound Towards 1.15 as Markets Await Fed Repricing

EUR/USD may be poised to rebound towards 1.15 against the US Dollar, according to ING's Francesco Pesole. He suggests that if markets maintain a constructive view on further geopolitical de-escalation, the pair could have bottomed out last week.

Pesole notes that a sustained move above 1.15 still requires dovish Federal Reserve repricing and stabilised risk sentiment. In light of this, he expects EUR/USD to react mainly to the FOMC and potentially return to the 1.1400-1.1450 range in coming days.

However, Pesole cautions that caution remains warranted due to ongoing geopolitical tensions, citing the recent resumption of military strikes overnight as a reminder of this risk.