06:07 AM EST, 11/26/2024 (MT Newswires) -- That Europe wasn't mentioned in the United States incoming President Donald Trump's first tariff post could perhaps be welcome news in the eurozone, said ING.

Yet European policymakers will remain fearful that it will just be a matter of time before Trump turns his attention to the European auto sector or tariffs more broadly, wrote the bank in a note. In any case, the threat of further tariffs on China shows the direction of travel in terms of world trade, which is bearish for the euro.

The eurozone data calendar is pretty light on Tuesday, but there are several European Central Bank speakers. So far financial markets are split on whether the ECB will cut by 25bps or 50bps on Dec. 12, stated ING.

The bank slightly favors 50bp, but it's a very close call. EUR/USD can probably spend some more time consolidating in a 1.0450-1.0550 range, but the direction of travel is lower.

Elsewhere, ING advised to look out for Sweden's Riksbank speakers on Tuesday. They are discussing neutral interest rates in Sweden.

Markets currently price another 100bps of cuts in the policy rate -- now at 2.75%. This, plus weak European growth and declining world trade, create a difficult environment for the Swedish krona, added ING.