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EUR/USD faces downside risks as French spreads and fiscal concerns persist

ING points to 1.1320 to 1.1330 as the next key EUR/USD support zone, potentially reached quickly if US data beats or oil rises sharply.

Reported · Written up by our desk · Major Pairs

FXStreet, citing Francesco Pesole at ING, said downside risks for EUR/USD are likely to persist, with the 1.1320 to 1.1330 area viewed as the next key support that could be tested quickly.

ING linked the euro's near-term outlook to offsetting forces, saying Eurozone economic resilience is being weighed against wider Eurozone spreads and fiscal concerns.

The commentary highlighted French 10-year yields trading about 110 basis points above bunds and noted that there has been little relief from reporting that Marine Le Pen could back the proposed budget to avert a bond crisis.

FXStreet also reported Pesole's view that new lows are not imminent, but that downside risks remain, particularly if US data surprises to the upside or if oil prices move higher again.

Latest closeEUR/USD 1.138 ▼0.6%

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