EUR/USD climbed to its highest level in a month at 1.0368 on Wednesday. Economists at ING expect the 1.0350/1.0400 area to be the top of the pair’s trading this month. 

Don't chase the EUR/USD rally

“We would favour 1.0350/0400 proving the top of the August trading range for EUR/USD.”

“In addition to the Russian threat from energy prices, the European manufacturing industry now has to contend with drought conditions and low water levels on the Rhine. That will challenge coal shipments, amongst other cargoes, and is keeping European natural gas prices bid near the highs. This factor remains an outright euro negative.”