EUR/USD to break 1.0960/1.0965 resistance and test 1.10 on soft US Existing Home Sales data – ING

EUR/USD edges close to the 1.10 level. Economists at ING analyze the pair’s outlook.

Another poor set of European PMI readings could again pull the rug from under the Euro

We would again expect the Dollar story to dominate today. Some soft US existing home sales data is probably the best chance of EUR/USD breaking 1.0960/1.0965 resistance and testing 1.10. But without short-dated US yields starting to break substantially lower – e.g., US two-year Treasury yields remain at 4.90% – we would be reluctant to chase EUR/USD too much above 1.10. 

Equally, another poor set of European PMI readings on Thursday could again pull the rug from under the Euro.