EURUSD is a straightforward dollar and risk sentiment story at the moment. Economists at ING expect the pair to return to parity in the near term.

Only a dollar story

“We struggle to see recent moves as the inception of a broad and sustained dollar downtrend, and we, therefore, think EURUSD may be close to its short-term peak.”

“There were already very few indications that the euro was particularly oversold before the recent upward correction: now, we are likely looking at an even more balanced positioning. We see room for a return to EURUSD parity in the near term.”