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EUR/USD trades in a tight band as volatility sinks toward 5.8%

ING expects EUR/USD to stay within 1.1515 to 1.1560 while warning European investors in US assets may need to increase dollar hedges if the dollar weakens.

Reported · Written up by our desk · Major Pairs

FXStreet reports that Chris Turner at ING says EUR/USD realised volatility continues to fall, with one year volatility at 5.8%, the same level as the low from November 2024.

Turner argues the low-volatility backdrop is unlikely to change before mid-September, when central bankers around the world return from their summer breaks.

ING also cautioned that European investors holding US assets may be underhedged and could need to raise their dollar hedge ratios if the dollar looks vulnerable.

FXStreet adds that EUR/USD is expected to remain rangebound at 1.1515 to 1.1560 today, reflecting traders reluctance to place aggressive bets ahead of the next set of central bank and macro developments.

Latest closeEUR/USD 1.155 ▲0.2%

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