EUR/USD to struggle to surpass the 1.1100/1120 area – ING

EUR/USD closed the second straight day in positive territory on Wednesday but struggled to clear 1.1050. Economists at ING expect the pair to remain capped at the 1.1100/1120 region.

Let’s hear from the ECB

“After the Fed’s success with a hawkish message and some suggestion from sourced reports that the ECB was unhappy with EUR/USD sub 1.10, ECB speakers may be happy to support expectations that the deposit rate is raised 35-50bp by the end of the year.”

“EUR/USD could nudge a little firmer on a risk-on day, but we favour gains to stall ahead of the 1.1100/1120 area.” 

“We are not in the camp looking for an immediate snap back to pre-war 1.13-1.15 levels and prefer a move back to 1.08 this summer.”