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EUR/USD could soon test 1.0600 – ING

EUR/USD has returned below 1.0700 after a very short bounce. The ING economists believe the pair could challenge the 1.06 level.

Hard for ECB rate expectations to rise much higher

“One of the problems facing the Euro at the moment is that markets are taking two more ECB rate hikes for September for granted, and it would probably take a fairly large upside surprise in the inflation numbers for that to happen.” expectations of a rise will exceed that point”.

“In any case, the risks seem to lean towards a moderate revaluation – and a negative impact on the Euro – in case France and Germany follow in the footsteps of Spain and show a faster than expected slowdown in inflation.”

“In this phase, and given the strength of the dollar, the pair EUR/USD could soon test the 1.0600 level“.

Source: Fx Street

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