EUR/USD: A weakening in US data remains the key to unlocking major upside room – ING

Economists at ING analyze EUR/USD outlook.

Strong – and growing – USD rate advantage

We still deem a sustainable EUR/USD rally premature, given the strong (and growing) USD rate advantage. Improvements in the Eurozone growth narrative would help, but a weakening in US data remains the key to unlocking major upside room for the pair.

The volatile situation in the Middle East remains a big question mark on the direction of the pair in the short term.

See – EUR/USD: The risks should continue to point downwards – Commerzbank