EUR/USD: Parity becomes a tough nut to crack – ING

EUR/USD showed some resistance at the 1.0000 level on Wednesday before falling back down. Economists at ING expect the pair to remain below parity.

Parity is an increasingly relevant level

“Considering the reluctance to turn more bullish on the euro into what should be a challenging winter for the eurozone, a sustained recovery to levels above parity in EUR/USD might now only be driven by markets buying more aggressively into the Fed pivot story and/or other drivers offering sustained support to risk assets.”

“For now, we feel comfortable in reiterating our call for EUR/USD to stay pressured into the 0.90-0.95 in the last months of the year.”

“The new pack of sanctions by the EU likely suggest a prolonged stand-off with Russia, while markets await more details on the proposed oil price cap.”