ING’s Chris Turner argues EUR/USD’s test of 1.1500 after the hawkish FOMC is unlikely to extend much lower, with 1.14/1.15 seen as the summer range floor given ING’s view that the Fed will not hike. The bank highlights upcoming ECB decisions, a neutral Swiss National Bank stance and sees EUR/CHF drifting back toward the 0.9250 area.

ECB and SNB shape euro crosses

"EUR/USD had a strong test of 1.1500 on the hawkish FOMC last night, but there might not be too much appetite to take it substantially lower just now. The ball is now back in the ECB's court and whether it chooses to hike in the July or September meetings – or not hike rates at all."

"At this stage, and given the house view that the Fed is not going to hike, 1.14/1.15 can remain the lower end of the range this summer."

"We see the Swiss National Bank on a prolonged pause. There could be some slight upside risk to EUR/CHF today not only from a neutral SNB, but also from higher global rates in general after last night's Fed and some potentially better news out of the Middle East. EUR/CHF can head back to the 09250 area."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)