Economists at ING dbelieve that the 1.10 level is within reach for the EUR/USD pair.

EUR/GBP to fall below 0.8800

“1.10 should be within reach in the near term. That is a key benchmark level and could see significant resistance: a break higher would likely signal a more structural shift in market strategic views for a stronger Euro.”

“In the crosses, we saw EUR/GBP fall below 0.8800, but we don’t expect the pair’s weakness to be very sustainable as we see the market pricing for Bank of England tightening as too aggressive and policy divergence should be a primary driver for a higher EUR/GBP.”