FXStreet reports that economists at ING think that EUR/USD will be largely rangebound into year-end. The question remains whether the German elections will provide a spark.

“1.17-1.20 may be the EUR/USD range into year-end, with the pair ending towards the top of the range given seasonal dollar weakness.”

“We would expect a broader dollar rally to emerge through 1H2022 as the market grows increasingly confident of the first Fed tightening later in the year.”

“The FX options market prices 30% more volatility than normal around the German election on 26 September. But the French presidential election next April is seen as a much bigger deal for FX markets.”