EUR/USD has established below 0.9700. Economists at ING expect the pair to build a new 0.90-0.95 trading range.

Volatility returns to levels last seen in April 2020

“EUR/USD realised volatility is now back to levels last seen in the early days of the pandemic. Tighter liquidity conditions as central banks raise rates and sell bonds typically do see volatility levels increase. This should be the story for this autumn.”

“The eurozone is just entering three consecutive quarters of negative growth. As a pro-cyclical currency, this is not the time for the euro to shine.”

“We see a 0.90-0.95 trading range developing.”