EUR/USD is now pressing the 1.000 resistance. But in the view of economists at ING, a return to above-parity levels looks unsustainable.

EUR/USD to suffer a drop to the low 0.90 area into year-end

“We struggle to see much more behind the pair’s rally other than a position-squaring event and a broad dollar correction. Despite European assets rebounding quite sharply, it’s hard to point to any material change in the eurozone’s outlook that would warrant a significant return of market appetite for the euro just yet.”

“There is not enough bullish push to keep EUR/USD above parity on a sustainable basis, and we still forecast a drop to the low 0.90 area into year-end.”