According to Chris Turner, global head of strategy at ING, euro has failed to take advantage of a weak dollar environment.

“Here the dramatic narrowing in the BTP:Bund spread should be seen as a EUR positive – yet one of the reasons for the narrowing (QE2 from the ECB) is holding the EUR back. Nonetheless, if investors slowly turn against the dollar there aren’t that many liquid alternatives and the EUR should find some support. For today, the focus is on eurozone industrial production, which may have increased in May though we expect manufacturing to be weak in the second half of the year. Let’s see if EUR/USD can edge up to 1.1330 in thin summer markets.”