EUR/USD could trade down to the 1.0700 area if the Fed fails to play down the risk of future rate hikes – ING

We are seeing the Euro a little softer across the board this week. Economists at ING believe that the EUR/USD pair could test the 1.0700 level.

Dollar correction may have a little further to run

“Yesterday’s release saw May flash PMIs on the soft side, but inflation in the service sector did stay resilient – which will be troubling for the ECB.”

“We think this Dollar correction may have a little further to run and EUR/USD could trade down to the 1.0700 area if the Fed fails to play down the risk of future rate hikes.”