EUR/USD to dip below 1.09 in the coming days – ING

Economists at ING expect the EUR/USD pair to suffer further losses in the coming days.

Contained impact from ECB speakers

“The latest ECB remarks have not had a huge impact on the Euro. Markets probably feel quite comfortable with the current pricing, and the Euro’s sensitivity to the September/October pricing has not been very high anyway.”

“Ultimately, EUR/USD remains a Dollar – and primarily a US debt ceiling – story for now.”

“There are downside risks that extend below the 1.0900 mark in our view in the coming days, and well below such level should money market liquidity start to dry up. That is not our base case, but a resolution to the debt-ceiling chaos may still follow a bumpy road and this does not appear to be the ideal time for a big rally above 1.1000 for the overbought EUR/USD.”