EUR/USD to end the year close to 1.10 – ING

Economists at ING analyze EUR/USD outlook ahead of the European Central Bank's December meeting.

EUR/USD to advance towards 1.0945/1.0965

EUR/USD has already enjoyed a strong rally on the back of the softer US rate view, and assuming the ECB does not fully embrace dovish expectations for next year, we would say the bias for EUR/USD lies towards 1.0945/1.0965 and probably 1.10 multi-day. 

Over recent months, we have been forecasting EUR/USD to end the year somewhere near 1.07. After last night's Fed shift, we expect EUR/USD to end the year closer to 1.10 now.