EUR/USD: Downside risks toward 1.10 – ING

ING’s Francesco Pesole highlights that divergent central bank rhetoric between the Federal Reserve and European Central Bank is weighing on the Euro against the Dollar. Wider two-year swap differentials favour USD, leaving EUR/USD at risk of testing 1.100 in coming days. ING expects that level to offer solid support, arguing a decisive break below 1.100 would likely require markets to price a 50bp Fed hike in December.