EUR/USD: Potential to press 1.0575 support and move to 1.0500 – ING

EUR/USD registered small losses on Thursday. Economists at ING believe that the world’s most popular currency pair could fall to the 1.05 level.

EUR/USD supported on a multi-quarter view

“A core view slowly permeating through the market is that the ECB has perhaps another 100 bps of tightening to do, but crucially will be leaving rates at those high levels throughout a large chunk of 2024. This should be a key factor in keeping EUR/USD supported on a multi-quarter view.”

“The Eurozone calendar is light today, but given the Dollar bid on the back of US data/geopolitics, the EUR/USD bias looks to a press of 1.0575 support and a potential move to 1.0500.”