Netherlands International: The Middle East conflict reminds investors to remain cautious about the euro

According to Jinshi reports, ING analyst Francesco Pesole pointed out in a report that the resumption of military strikes in the Middle East conflict reminds investors to remain cautious regarding the euro to US dollar exchange rate. He stated that for the euro to ensure a sustained rise above 1.15 dollars, the market needs to lower expectations for US interest rate hikes through data or communication from the Federal Reserve, while risk sentiment also needs to stabilize.

If the market's general optimistic expectation that the conflict situation will ease is correct, then the euro to US dollar exchange rate has likely already bottomed out.