EUR/USD is at the highs of the year above 1.09. But in the view of economists at ING, the pair is unlikely to trade above the 1.10 level.

EUR/USD will stay bid

“Investors may struggle to push EUR/USD through the 1.0950/1000 area ahead of next week's FOMC/ECB risk events – though it looks like EUR/USD will stay bid.”

“One note of caution to the EUR/USD really, however, is that the EUR/USD risk reversal – the price investors pay for a euro call over a similar euro put option – is no longer shifting away from euro puts and in favour of euro calls. Perhaps this is a function of where the EUR/USD spot is. Yet this could suggest that investors and corporates see 1.10 as the top of a multi-month trading range.”