EUR/USD could head up to the 1.08 area should equities settle down a little – ING

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EUR/USD touched a fresh multi-week high of 1.0760. The world’s most popular pair could test the 1.08 level, economists at ING report.

Settling in for the ECB

“Should equities settle down a little, EUR/USD could start to reconnect a little with yield differentials and head up to the 1.08 area.” 

“Any severe signs of US money market stress could easily see these EUR/USD gains reverse.” 

“The mood in EUR/USD may also be subdued ahead of the European Central Bank’s expected 50 bps hike tomorrow.”