EUR/USD: 1.0500 to be retested soon – ING

EUR/USD gathered recovery momentum and registered gains on Thursday before continuing to stretch higher toward 1.0600 on Friday. Economists at ING analyze the pair’s outlook.

Downside risks to EUR/USD today

A rebound in the Dollar, lingering concerns on Italian bonds (even if with a smaller intensity than in previous instances) and a decline in core inflation point to downside risks to EUR/USD today. 

We expect the 1.0500 mark to be retested soon.

See: EUR/USD to move to 1.02 on a three-month view – Rabobank