EUR/USD: Drop could extend to sub-1.0700 levels – ING

EUR/USD has been moved almost entirely by the Dollar in the past week or so, as debt-ceiling news dominated. Economists at ING analyze the pair’s outlook for this week.

The balance of risks appears tilted to the downside

“For this week, the balance of risks appears tilted to the downside for EUR/USD as the Dollar may find a bit more support from a debt-ceiling deal and hawkish Fed rate expectations.”

“We can’t exclude the drop extending to sub-1.0700 levels at this stage, although opportunistic buying would probably start to emerge more prominently around such levels.”