EURUSD unlikely to settle above parity in the coming weeks – ING
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EURUSD climbed back above parity yesterday. However, economists at ING do not expect the pair to establish above 1.00.
“In the eurozone, we continued to hear calls for more tightening, with European Central Bank president Christine Lagarde and Governing Council member Francois Villeroy de Galhau both maintaining a hawkish tone. We doubt, however, this is offering idiosyncratic support to the Euro at this stage.”
“While the US inflation report and the mid-term elections are two key risk events for the dollar, macro factors continue to point at a weaker EURUSD, and we doubt that with the economic uncertainty in the eurozone ahead of the winter and a still hawkish Fed the procyclical EURUSD will easily remain above parity in the coming weeks.”
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