EUR/USD looks likely to test 1.0800 in the coming days – ING

EUR/USD remained stable in the mid 1.0800-1.0900 range but it has come under pressure early Wednesday. Economists at ING analyze the pair’s outlook. 

1.0800 test in sight

EUR/USD continues to follow the Dollar dynamics without showing any material impact from eurozone-specific drivers. The pair looks likely to test 1.0800 in the coming days.

The EUR-USD 2-year swap rate differential seems to have found a bottom recently but remains significantly wide in negative territory (130bp) and would be consistent with a softer EUR/USD if it wasn’t for the supportive equity environment of recent months.