EUR/USD: Time to stabilise below parity – ING

EUR/USD suffered another sharp drop yesterday, as a breach of parity led to a break below 20-year lows. Economists at ING expect the pair to stay below parity.

The euro will see another PMI drop 

“A key question is whether the ECB will start discussing active support to the currency now that we have broken decisively below parity. We’ll hear from Fabio Panetta today in a scheduled speech, but keep an eye on any unscheduled remarks by hawkish members that may well become even more vocal on the weak euro.” 

“On the data side, today’s PMIs will be the main highlight of the week, and we expect another drop after July’s grim readings, which may leave EUR/USD vulnerable to the 0.9800-0.9850 area.”