EUR/USD does not go too much further above 1.10 now – ING

EUR/USD has spiked to 1.10. Nevertheless, economists at ING expect the pair to struggle to surpass this level.

1.10 could be sticky

We are tempted to say that EUR/USD does not go too much further above 1.10 now. And let's see how it copes with today's release of flash French, German and Eurozone PMIs. Soft releases here hit the Euro through the autumn, and while expectations are for stable readings today – these all largely remain in contractionary territory. 

Our bias is that EUR/USD hangs around this 1.10 level into year-end. Yet December is seasonally a weak month for the Dollar and trends have a habit of extending in thin year-end markets.