EURUSD to be dragged around by GBPUSD today – ING

EURUSD remains in corrective mode. In the view of economists at ING, Euro could be dragged around by Sterling as focus shifts to UK Autumn Budget.

1.0270-1.0500 remains expected near-term trading range

“Euro is not reacting much to press reports of the ECB favouring a 50 bps over a 75 bps hike in December. Notably, the FX options market has shown no more signs of distress – i.e. investors are not scrambling to buy euro call options – and one can argue that this makes the 1.05 area a slightly firmer ceiling for 4Q22.”

“Expect EURUSD to be dragged around by GBPUSD today – just as it was in September. 1.0270-1.0500 remains our expected near-term trading range for EURUSD.”