EUR/USD has slumped to its weakest level in 22 months near 1.1000. Economists at ING believe that the world’s most popular currency pair is set to break below this level.
Gearing up for a break below 1.10?
“Divergence in policy expectations and equity performance (European equities have weakened more than the US) have driven the pair’s short-term fair value lower: we currently estimate it at 1.0980.”
“We may not have to wait for a specific trigger-event to force a decisive move below 1.1000, although a strong NFP reading, more sanctions against Russia or further spikes in energy prices could all contribute to breaking the support today.”