EUR/USD took another hit after the Fed. As discussed above we expect the shift in language by Powell to favour a longer period of dollar dominance and keep the Atlantic Spread wide. All this reinforces our view that EUR/USD will keep sliding lower in the coming weeks, and we expect to see the 1.02-1.03 levels being tested. Elsewhere in Europe, we’ll see central bank announcements in Sweden and Norway this morning. We expect a 25bp cut by the Riksbank and a hold by Norges Bank, ING’s FX analyst Francesco Pesole notes.

EUR/NOK close to 11.80 is unwelcome by Norges Bank

“Forward-looking