EUR/USD to surge toward 1.07 on soft NFP report – ING

EUR/USD moves up and down in a narrow range slightly below 1.0600. A weak Nonfarm Payrolls release could send the pair all the way back to where it started the week near 1.0700, economists at ING report.

Caught in the cross-fire

“The SVB Financial-inspired repricing of the Fed curve has seen the two-year EUR:USD swap differential narrow by 20bp in favour of the euro over the last two days. This is providing some support to EUR/USD.”

“A soft NFP job release – questioning whether the Fed has to be as hawkish as Jerome Powell sounded earlier this week – could send us all the way back to where we started the week near 1.0700.”

See – NFP Preview: Forecasts from 10 major banks, many new jobs created