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Euro downside risks shrink as EUR/USD moves toward fair value

ING says EUR/USD’s move below 1.140 has left the pair trading at an undervaluation versus its short-term fair value model.

Reported · Written up by our desk · Major Pairs

FXStreet reported that Francesco Pesole at ING said the euro’s downside risks versus the US dollar are starting to ease after EUR/USD broke below 1.140.

In ING’s view, that move has pushed the currency pair into a level the firm considers stretched, or undervalued, versus its short-term fair value model.

Pesole attributed the shift to rate differentials moving in the euro’s favor, helping reduce near-term downside pressure in the pair.

Latest closeEUR/USD 1.122 ▼0.3%

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