EUR/USD: 1.0650 may be the corrective high – ING

EUR/USD participated in the dollar sell-off and reached its highest level in a week at 1.0642. Economists at ING think the rally is set to stall at the 1.0650 zone.

Hard to make the case for a meaningful EUR/USD rally

“We think there is a chance that the rally stalls ahead of the 1.0650 area.” 

“It seems too early to position for the type of orderly Fed policy normalisation which would create benign conditions for the global risk environment. Instead, challenges both in Europe and China create many headwinds for the pro-cyclical euro.”

“The balance of risks suggests it is hard to make the case for a meaningful EUR/USD rally.”