More swings within the 1.05/1.06 range may remain the norm – ING

EUR/USD has continued to enjoy pockets of support on the back of negative USD swings. Economists at ING analyze the pair’s outlook.

Idiosyncratic support remains limited

The Euro still appears to be lacking the strong idiosyncratic bullish narrative that can drive the pair sustainably above into the 1.0650/1.0700 range.

Markets will likely await cues from the European Central Bank next week, and a few more data out of the Eurozone, but the chances of a rapid upturn in Euro bullish momentum aren’t too high. This means that EUR/USD should remain almost entirely driven by the USD leg for now.

More swings within the 1.05/1.06 range may remain the norm for now, but we see the balance of risks as slightly tilted to the downside.