EUR/USD: Return below 1.07 in the coming days looks more plausible than another rally – ING

EUR/USD is making a fresh attempt at breaking significantly above 1.0750 (the 50-day moving average) this morning. However, economists at ING expect the pair to move back lower towards the 1.07 level.

Upside potential more limited now

“We see a higher chance of some recovery in the dollar from the current levels rather than an extension of the drop, and with a lot of ECB tightening now in the price, the room for the euro to benefit further from the monetary-policy factor appears limited.” 

“We expect a return below 1.07 in the coming days.”