EUR/USD has benefited from some dollar softness to climb back above 1.10, although the pair is struggling to find enough bullish support to extend the run to 1.11. The balance of risks for EUR/USD remains skewed to the downside in the view of analysts at ING, who expect a drop to 1.08-1.09 in the coming weeks.

Not enough bullish steam

“The combination of lingering Russia-related risks, high energy prices and Fed-ECB policy divergence still points to a weaker, rather than stronger, EUR/USD.”

 “We continue to expect a drop to 1.08-1.09 in the coming weeks.”