EUR/USD seen higher above 1.1700 on essential ECB tightening in 2022 – Citibank

Analysts at Citigroup offer their bullish outlook on the EUR/USD pair, despite ECB's Villeroy's push back on hawkish rhetoric, earlier this week.

Key quotes

"EUR continued fluctuating post the European close and into Asian trading. Our traders noted that post ECB's Villeroy's push back on hawkish rhetoric, the lacking response showed that markets see tightening as essential this year."

"CitiFX Technicals also sees developments in the US-German 10y spread potentially supporting EUR. That upside case puts the 1.1483-1.161 resistance range and potentially 1.17+ are on watch.”