EUR/USD continues to nudge higher. However, economists at ING expect the rally to run out of steam at 1.08 and would be surprised if the pair manages to climb toward 1.10.

External environment to keep EUR/USD supported in the near-term

“We do not think there are strong arguments for EUR/USD to move back to and above 1.10.”

“Our preference would be for this EUR/USD correction to top out near 1.08. But for the short-term, the external environment will keep EUR/USD supported.”