EUR/USD is surging this morning and trades near parity. However, economists at ING expect the pair to remain under pressure and believe that the shared currency could plummet to the  0.9600-0.9650 support zone.

Energy crisis is set to keep EUR/USD capped for now

“The energy crisis is set to keep EUR/USD capped for now, despite the short-term swap rate differential having continued to widen in favour of the euro and is at the highest in six months.” 

“The 0.9900 support appears to be a rather fragile one and was briefly broken yesterday, we could see 0.9850 or 0.9800 as the next key levels, although the worsening macro picture in Europe means that a further drop to the 0.9600-0.9650 supports cannot be excluded.”