EUR/USD: Near term upside risks - ANZ

The ECB has upgraded its forward guidance in light of the improving economic backdrop, although inflation remains unacceptably low which is likely to propel EUR/USD higher in the near-term, according to analysts at ANZ.

Key Quotes

“Weak US inflation may lead to a pause in the US interest rate tightening cycle which could allow the euro to move higher near term.”

“The large balance of payments surplus in the euro area may also support the EUR in a period of low volatility and better growth.”