EUR/USD could see a break below 1.0800 followed by another leg lower to the 1.0700/1.0750 area – ING

Economists at ING discuss EUR/USD outlook for the week ahead.

Looking across the Atlantic

“In EUR/USD, the Dollar leg will probably keep driving the majority of the moves.”

“Downside risks persist for the pair on the back of the US debt ceiling impasse, and we could see a break below 1.0800 (a key level, also the 100-Day Moving Average) followed by another leg lower to the 1.0700/1.0750 area should the risk environment deteriorate much further.”

“Still, we don’t expect EUR/USD weakness to last beyond the near term.”