EUR/USD remains in a consolidation phase slightly below 1.06 early on Friday. The ING economists expect the world’s most popular currency pair to move towards the 1.0650/70 zone in the coming days.
EUR/USD will approach parity in the third quarter of 2022
“The market is now pricing in an ECB rate hike of 31/32 basis points (bps) at the ECB meeting on July 21 – valuation that has plenty of room to bounce between +25bps and +50bps in the next two months This could drag EUR/USD back towards the 1.0650/70 area in the coming days – helped by brief periods of calm in the external environment – but we would see this as a bear market rebound.”
“Our central view of EUR/USD for the second half of 2022 is one of more volatility and probably the par approaches parity in the third quarter, when Fed tightening cycle expectations could be at their zenith.”
Source: Fx Street