EUR/USD fell below 1.10 on Monday but closed the day virtually unchanged slightly below that level. Economists at ING still expect the pair to break under the 1.09 mark in the coming days.

Only limited respite from peace talks

“We estimate the current short-term fair value in the 1.07/1.08 area at the moment.”

“Peace talks between Russia and Ukraine are offering some support to the euro. However, we suspect we’ll need to see continued optimism on this side to keep the EUR/USD afloat given the pressure applied by rising US yields.”

“We continue to see downside risks for EUR/USD in the near-term, even if peace talks offer some temporary respite, and we still expect a break below 1.0900 soon.”