The risk rally sends EUR/USD back above 1.0300. Economists at ING expect the pair to continue rising and reach 1.0400/50 in the coming days.
Only a US Dollar function
“Some improvement in China-related sentiment is a positive development for eurozone assets and the Euro, but swings in the pair remain primarily a function of broader Dollar moves.”
“The Fed minutes are the most important event for EUR/USD today, along with further changes in the market’s sentiment on China.”
“An extension of the rally to 1.0400/1.0450 is surely possible in the coming days, but a return to parity in the next few weeks remains our base case as we enter a challenging winter for the eurozone economy.”