EUR/USD trades water in the low 1.09 area. Economists at ING analyze the pair’s outlook.
Rate differentials are still too depressed to argue for a sustainable rally above 1.10 just yet
Data remains the missing link for a more material repricing in ECB rate expectations, and another miss by the IFO on Monday in Germany suggests we are not at peak pessimism yet on the eurozone economic outlook.
EUR/USD can trade above 1.10 during the holiday period as the Dollar enters a seasonally soft period, but rate differentials are still too depressed to argue for a sustainable rally above 1.10 just yet.
