EUR/USD: Outside risk to the 1.04/1.05 area on a break below 1.0610/1.0630 support – ING

EUR/USD continues to trade in a listless fashion. Economists at ING analyze the pair’s outlook.

Dip to 1.05 seen as an opportunity to reset hedges ahead of seasonal Dollar weakness in November/December 

EUR/USD has decent support in the 1.0610/1.0630 region, below which there is an outside risk to the 1.04/1.05 area. However, our strategic view remains that the US economy will converge on the anaemic growth in Europe next year and that the Dollar will weaken.

We would see a dip to the 1.05 area over the coming weeks as an opportunity to reset hedges ahead of seasonal Dollar weakness in November and December this year.