EUR/USD can continue to trade near 1.05 – ING

Dollar could hold gains for a few more months, economists at ING report.

November through December is seasonally a weak period for the dollar

Tightening financial conditions – especially in the US – create further headwinds to global growth. These conditions look set to support the Dollar over the coming months.

Typically, November and December are weak months for the Dollar. But poor growth in the Eurozone and what could be some political risk premium going back into the Euro could keep EUR/USD at these low levels near 1.05 into year-end.

Even at 1.05, EUR/USD does not look substantially undervalued.