EUR/USD: Rally to run out of steam around the 1.0600/1.0650 area – ING

EUR/USD continues to push higher toward 1.0600. Economists at ING expect the pair’s rally to run out of steam around the 1.0600/1.0650 area.

Energy scares coming back?

“Given the high sensitivity of EUR/USD to the eurozone’s terms of trade (which is primarily driven by energy prices), further upside risks for energy commodities equal downside risks for the Euro.”

“This week, some Dollar stabilisation could make the EUR/USD rally run out of steam around the 1.0600/1.0650 area, and possibly lead to a more sustainable drop below 1.0450/1.0500.”

“We remain bearish on the pair into year-end.”