Euro lacks bullish momentum for further growth — ING

The Commodity Futures Trading Commission (CFTC) data show that speculative positions on the euro-dollar pair have reached their highest level since January 2024. This supports the European currency, though its growth potential remains limited, Investing experts say.

Market participants are slowly giving up on the US-EU trade agreement. Moreover, many of them expect retaliatory restrictions from European countries. As Investing notes, the Donald Trump administration is known for its low tolerance for such actions. The realization of this scenario could trigger a cycle of reciprocal tariff hikes, the website warns.

Analysts at ING believe the euro lacks bullish momentum. The single currency is unlikely to reach the highs seen in early July anytime soon. In addition, markets are not factoring in future downward pressure from the region’s retaliatory measures and ongoing monetary policy easing. At the upcoming European Central Bank (ECB) meeting, the interest rate is expected to remain unchanged, but policymakers are considering another cut by December.