EUR/USD: Shallow consolidation ahead of parity assault – ING

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The EUR/USD try to extend your recovery above 1.02. The economists of ENG they expect the pair to consolidate before falling below parity.

Parity a stone’s throw away

“We would continue to bet that the Fed tightening is best maintained in this summer’s equity bear market and there is no sign of a significant bottom in EUR/USD yet.”

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Let’s look for a shallow consolidation now – probably tops out at 1.0350/70, or more likely 1.0270 – before the parity assault takes place. Tomorrow’s NFP or next week’s US CPI look like the best candidates to trigger the parity test.”

“We can expect the ECB to threaten more aggressive rate hikes, say by 50 basis points at the July meeting, but given the global and European growth environment, the hawkish rhetoric seems unlikely to trigger a big bounce in the euro. “

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Source: Fx Street

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