EUR/USD is currently trading at the highest level since mid-September. Economists at ING analyze the pair’s outlook.
Rates do not justify such a high EUR/USD
USD rates still have some way to fall to justify a continuation of the Dollar correction. From a EUR/USD perspective, this is especially true considering that Euro idiosyncratic support has been scarce, and unlikely to pick up anytime soon in our view.
The Eurozone calendar is quiet this week, and data has hardly given much help to the Euro anyway.
With no key US activity data this week, EUR/USD may slip back below 1.0700 rather than push higher to 1.0800.