FX will be dominated by two key themes over the coming months. The first is the prospect of Marine Le Pen’s RN party coming to government. The second are welcome signs of US disinflation, which will give the Federal Reserve (Fed) enough confidence to start cutting rates in September, Chris Turner, Global Head of Markets at ING noted.
EUR/CHF proves a cleaner vehicle to hedge against election risk
“Crosswinds in the FX market suggest EUR/USD should stay volatile within ranges – although probably with a downside bias this month as investors reduce euro exposure ahead of French…