EUR/USD registered impressive gains and climbed above 1.1000 for the first time since early April. Economists at ING ntoe that there is a clear path toward the 1.12 level.

The EUR/USD story is positive

“A sharp narrowing in rate differentials stands to become a bigger driver of EUR/USD this year and should carry it to the 1.15 area in the second quarter.”

For the shorter term – there is not much resistance now until the 1.12 area. But buy-side positioning is the longest in the Euro since the summer of 2021 meaning that the rally could prove hard work. The EUR/USD story is positive, however.”