The EUR/USD backdrop remains supportive – ING

EUR/USD trades sideways around 1.0830. But the near-term macro trends remain supportive, economists at ING note.

Continuing fall in European gas prices

“China’s demand trends are supportive of pro-cyclical currencies like the Euro. That better outlook for the Eurozone could appear in today’s German January ZEW investor survey, where the expectations component is expected to have improved from -23 to -15.” 

“The continuing fall in European natural gas remains a positive development for the Eurozone trade balance and is Euro supportive.”

“EUR/USD may consolidate in a 1.0780-1.0870 range today – but the near-term macro trends remain supportive.”