ING Groep(US:ING) Sou Hu Cai Jing·2025-09-04 09:40Core Viewpoint - The EUR/USD exchange rate is expected to rise above 1.17, driven by the anticipated divergence in interest rate movements between the Federal Reserve and the European Central Bank [1] Group 1: Interest Rate Expectations - The market has fully priced in two 25 basis point rate cuts by the Federal Reserve within the year [1] - In contrast, the European market only sees a 30% chance of a single rate cut by the European Central Bank before the end of the year [1] Group 2: Currency Strategy - Francesco Pesole, a forex strategist at ING, believes that the EUR/USD should be higher based on the short-term interest rate differentials between the US and Europe [1] - The expectation of larger rate cuts by the Federal Reserve compared to the European Central Bank creates a favorable outlook for the euro against the dollar in the coming months [1]