EUR/USD enjoyed a good rally on Thursday. Economists at ING expect the world’s most popular currency pair to trade within a 1.0400-1.0600 range for the near-term.

Volatility to remain high

We do not see any reason for EUR/USD to embark on a sizable rally this summer – perhaps the only cause for such a move could be 8-10% declines in equity markets such that the Fed cycle is substantially re-priced.”

“Expect volatility to remain high and EUR/USD could well bounce around in a 1.0400-1.0600 range for the near-term.”