EUR/USD moved higher thanks to the weakness of the US Dollar, driven by Trump’s tariffs. The resignation of Gary Cohn, the top adviser adds to this mix.
Here is their view, courtesy of eFXnews:
ING Research discusses the USD outlook in light of the resignation of White House chief economic adviser Gary Cohn and thinks that such a move confirms USD structural weakness over the coming months.
“The resignation of White House chief economic adviser Gary Cohn may be all the confirmation global markets need that the US administration’s protectionist policy agenda is more than just a political show.
Bottom line: Look for the US dollar to continue trading on the back foot, with Cohn’s resignation merely providing confirmation that the currency should be trading with a risk premium due to greater US policy and political uncertainty,” ING argues.
“Our long-held bullish EUR/USD view remains intact – we target 1.30 by the year. The key domestic EUR driver of the week is the March ECB meeting on Thursday, posing some upside risk to EUR/USD,” ING adds.
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