EUR/USD may lack enough buyers above the 1.0530/1.0550 area – ING

EUR/USD gains traction above the 1.05 level. Economists at ING analyze the pair’s outlook. 

The Dollar remains an expensive sell

EUR/USD has rebounded from the 1.0450 lows but may lack enough buyers above the 1.0530/1.0550 area.

The Dollar remains an expensive sell, and there simply isn’t a compelling story in the Eurozone to counter the US exceptionalism narrative. 

The ability of EUR/USD to stay attached to 1.0500 is almost entirely linked to the US bond market enjoying two consecutive days of reprieve. That may be possible due to the lack of key US data today outside of jobless claims, but the pair is facing the tangible possibility of another leg lower with US payrolls on Friday.