EUR/USD to trade back to 1.12 - ING

Analysts at ING are expecting the EUR/USD pair to trade back to 1.12 over coming months, guided by the modest dollar strength.

Key Quotes

“There’s very little to say about the EUR right now apart from: (a) politics look to be on the back-burner until European parliamentary elections in May and (b) weak growth does not present Europe as an obvious beneficiary of the investor rotation out of US asset markets and the dollar.”

“The biggest positive surprise to European currencies (not our baseline) could emerge from Brexit discussions – were a policy path to a second referendum to develop. There is very little clarity on this – but GBP-led gains in EUR/USD to the 1.18 area is an outside risk.”