EUR/USD surprisingly resilient despite growing divergences - ING

Analysts at ING, in its latest report, provided H1 2017 outlook for the EUR/USD pair.

Key Quotes:

“We think it’s primarily extreme under-valuation which is preventing EUR/USD trading substantially below 1.05. However the negatives are stacking up and it’s hard to see European political opinion polls providing much support to the EUR over coming months.”

“Add in concerns that Greece will miss a €6bn debt repayment in July and the conclusion is that EUR should stay soft for 1H17. 1.0640/50 looks near term support and 1.0500/25 looks the near term target.”