EUR/USD ended the previous week virtually unchanged. The pair may find a floor around 1.0400-1.0450, but downside risks beyond that persist, economists at ING report.

Downside risks to the 1.02-1.00 area over the summer months

“More stability in the eurozone peripheral bond market and not-so-bad PMIs may put a temporary floor under the EUR around the 1.0400-1.0450 area despite the dollar staying largely bid.”

“But downside risks to the 1.02-1.00 area over the summer months on the back of sustained dollar strength and a deteriorating eurozone outlook persist.”