EUR/USD is stretching to the lowest levels since mid-July, not far from parity, which will not please the European Central Bank (ECB). Economists at ING expect the pair to stay offered on a quiet Friday.

ECB does have a problem with the weaker euro

“It seems that the ECB does have a problem with the weaker euro – judging by Isabel Schnabel’s interview with Reuters yesterday. But to drive EUR/USD higher – the most relevant euro pair in an energy crisis – the ECB is going to have to turn a lot more hawkish. That is a tough job with a recession around the corner.”

“Expect EUR/USD to stay offered in a 1.0100-1.0200 range on a quiet Friday.”