ING Predicts Further Weakness for the Euro

Forex - ING stated that the Euro may weaken further as the European Central Bank could cut interest rates more aggressively than the Federal Reserve. ING analysts emphasized that the threat of tariffs from newly elected U.S. President Donald Trump could lead the ECB to take "preemptive haste" in lowering interest rates to support the Eurozone economy. Analysts noted, "In contrast, considering Trump's growth-friendly and potentially inflationary agenda, we believe the Fed will only implement one rate cut each quarter," also mentioning that adverse geopolitical and political developments in the Eurozone could put additional pressure on the Euro. ING recommends selling the Euro with a target price of $1.0210 and a stop-loss at $1.0820.