The euro's modest rise against the dollar after Thursday's weak U.S. nonfarm payrolls data highlights the lack of a convincing positive narrative for the single currency, ING's Francesco Pesole says. That largely reflects doubts the European Central Bank will raise interest rates again, he says in a note. There's a risk markets price out all ECB rate rises before they do the same for Federal Reserve tightening, he says. The paring of Fed rate rise bets could still support the euro-dollar exchange rate as it reacts more to U.S. rates, but its recovery might be slow, he says. The euro rises 0.2% to $1.1453, and ING expects it won't return to above $1.16 until late in the summer. (renae.dyer@wsj.com)
Dow Jones Newswires
Euro Could Take Time to Recover — Market Talk
The euro's modest rise against the dollar after Thursday's weak U.S. nonfarm payrolls data highlights the lack of a convincing positive narrative for the single currency, ING's Francesco Pesole says. That largely reflects doubts the European Central Bank will raise interest rates again, he says in…