EUR/USD could climb as high as 1.0550 – ING

EUR/USD has enjoyed a short-term reprieve. Economists at ING believe that the world’s most popular currency pair could reach the 1.0550 mark on Tuesday.

Expectations for ECB hikes are still creeping higher

“Today looks as good a day as any for an oversold bounce in EUR/USD, which could carry it as high as 1.0550.” 

Interestingly, expectations for European Central Bank hikes are still creeping higher. The ECB managing expectations of a 100bp rate hike this year may be what it takes to deliver some temporary stability to EUR/USD – even though we remain in a powerful downtrend.