ING forecasts EUR/USD retesting 1.1300 amid Fed rate hike expectations before a late-year rebound to 1.16-1.18.
EUR/USD slipped as markets priced a 50-basis-point Fed rate hike this year, overshadowing Eurozone inflation concerns. ING expects the pair to retest 1.1300 in the coming weeks, driven by the Fed narrative dominating summer trading.
Eurozone inflation softened recently, casting doubt on a September ECB hike, though 15 basis points remain priced. Analysts warn inflation may rise later as energy subsidies expire, potentially supporting the euro.
ING’s baseline sees EUR/USD recovering to 1.16-1.18 by November-December if the Fed pauses, assuming no further hikes materialize.