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Euro faces tight range vs dollar as Fed seen unlikely to tighten more

ING expects EUR/USD to trade toward 1.160 in coming weeks, then 1.170 in autumn, and notes a test of 1.1500 could lift the lower end of the range amid low volatility.

Reported · Written up by our desk · Major Pairs

ING strategist Francesco Pesole maintained a constructive view on EUR/USD after recent US data, arguing the Federal Reserve is unlikely to deliver further tightening. Based on that Fed assessment, ING targets 1.160 in the coming weeks, 1.17 in autumn, and 1.18 by year end.

FXStreet also highlights the risk backdrop that could change the tone for the dollar, including the possibility of renewed escalation in the Gulf providing fresh support to USD. Pesole warned that with no clear catalysts ahead, EUR/USD may stay confined to tight ranges for longer and see volatility test recent lows.

ING said it will watch closely for another test of 1.1500, with the expectation that buyers could re-emerge there. The firm’s bias is that this could nudge the dominant trading range higher to roughly 1.1500 to 1.1600.

Latest closeEUR/USD 1.153 ▼0.2%

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