EUR/USD to break below 1.1750 as dollar enjoys bullish momentum – ING

Breaking below the recent range? EUR/USD is holding steady above 1.1750 but economists at ING expect the pair to slide below its recent trading range lows.

The focus in the eurozone will be on the German ZEW survey

“The ECB’s recently-confirmed ultra-dovish stance is not one of those stories that can come to the help of the euro.” 

“The spread of the Delta variant may keep markets reluctant to unwind their defensive dollar trades in the week ahead. The silver lining here, which could limit the EUR downside, is that widely vaccinated eurozone countries are still refraining from imposing new draconian restrictions despite the flare-up in cases.”

“The expectation index of the German ZEW survey may fall for a third consecutive month, but the assessment of the current situation could continue to rise.”

“Barring major surprises in the ZEW, and considering there are no other major data releases in the eurozone nor any scheduled ECB speakers, EUR/USD may break the lows (1.1750) of its recent trading range if the dollar draws some support from unstable risk sentiment.”