Euro: Gains capped against US Dollar by Fed story – ING
By FXStreet Insights Team
Updated: 27 May 2026
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ING’s Chris Turner notes EUR/USD remains sluggish despite progress toward a US–Iran agreement that could reopen the Strait of Hormuz and despite hawkish ECB commentary from Philip Lane and Isabel Schnabel.
ING’s Chris Turner notes EUR/USD remains sluggish despite progress toward a US–Iran agreement that could reopen the Strait of Hormuz and despite hawkish ECB commentary from Philip Lane and Isabel Schnabel. He argues that a stronger Fed tightening narrative should dominate in coming weeks, limiting EUR/USD upside and preventing sustained gains above the 1.1650/60 region.
Euro seen struggling to extend gains
"EUR/USD remains sluggish despite the world seemingly being days away from the US and Iran signing a Memorandum of Understanding to extend the ceasefire and reopen the Strait of Hormuz."
"Notably, the euro failed to get much of a lift yesterday from ECB speakers Philip Lane and Isabel Schnabel, firming up views for a 25bp rate hike on 11 June."
"We think the hawkish Fed story will be the more dominant theme over the next few weeks and struggle to see EUR/USD sustaining gains over the 1.1650/60 area in the current environment."
"The eurozone data calendar is exceptionally light today."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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