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EUR/USD set to correct to the 1.0825/1.0850 area this week – ING


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EUR/USD remains well bid. Economists at ING analyze the pair’s outlook.

EUR/USD should struggle to better resistance at 1.0965/1.1000

EUR/USD should struggle to better resistance at 1.0965/1.1000 this week.

This week’s data highlight will be flash CPI for November set to be released on Thursday. Here, further disinflation is expected in both headline and core readings, bringing YoY rates back to 2.7% and 3.9%, respectively. These readings might tend to support the 70 bps of the European Central Bank (ECB) easing priced into Eurozone money markets next year.

We favour EUR/USD correcting to the 1.0825/1.0850 area this week.