EUR/USD to trade a 1.05-1.10 range over coming months – ING

Trade-weighted measures of the dollar continue to trade near their highest levels since the summer of 2020. Economists at ING expect the greenback to hold gains, with the EUR/USD pair trading within a 1.05-1.10 range.

Most roads lead to a firmer dollar

“The combination of a hawkish Fed and an uncertain European backdrop suggests EUR/USD is more likely to trade a 1.05-1.10 range over coming weeks and months.”

“North American currencies should remain favoured, while the energy importing currencies of Europe and Asia should continue to underperform.”