EUR/USD has reached its highest level in nearly eight weeks above 1.0920. 1.1000 is a key benchmark level for the pair, economists at ING report.

EUR/USD to hit 1.15 in the second half of 2023

“The next key handle for EUR/USD is 1.1000: that is an important benchmark level that may see some significant resistance unless markets feel substantially confident the worst of the banking shock – especially in Europe – is past us.”

“But even if the Fed has pushed ahead with tightening, its rhetoric compared to the ECB is appearing more dovish, particularly when it comes to rate cuts. All this points to a supported EUR/USD in the remainder of this year and we target 1.15 in the second half of 2023.”