EUR/USD: Rally unlikely to extend towards thhe 1.08-1.09 area – ING

EUR/USD broke the 1.07 mark on Tuesday. However, a move to 1.08-1.09 in is not the base case of economists at ING.

A move to 1.08-1.09 would be too stretched

“Now, it appears most of the positives are in the price, especially considering that markets are already pricing in 100bp of ECB tightening by year-end, and we think a consolidation looks more likely than an extension of the rally to the 1.08-1.09 region.”

“The eurozone calendar doesn’t include market-moving data releases today, but there is a long line of scheduled ECB speakers to keep an eye on: Christine Lagarde and Klaas Knot in Davos, Robert Holtzmann, Pablo Hernández de Cos and Philip Lane elsewhere.”