EUR/USD has tested the December low of 1.0725 in recent days. Economists at ING analyze the pair’s outlook.
Bears not particularly enthusiastic
Even though EUR/USD has come lower, the FX options market suggests there has been little conviction about the move.
It seems we are in a new EUR/USD holding pattern at slowly lower levels. That looks likely to be the case into Friday’s release of the US CPI revisions.
1.0725-1.0800 looks to be the short-term EUR/USD range.
See: The Euro simply has little to offer against the strength of the USD at the moment – Commerzbank
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