EUR/USD plunged back to the 1.0250 area yesterday. Economists at ING continue to target levels under parity into the new year.

Preparing for a longer downtrend

“Expect some support at 1.0200 in EUR/USD: a decisive break below that level could underpin the return to a bullish Dollar narrative and unlock more downside risks.”

“We see further room for a contraction in EUR/USD this winter and continue to target sub-parity levels into the new year.”

See – EUR/USD: Rebound may have already peaked just shy of 1.05 – Crédit Agricole