EUR/USD set to explore the 1.06 mark – ING

EUR/USD closed above 1.0500 for the first time since June. Economists at ING note that the pair could test the 1.0600 level.

Ignoring some warning signs

“EUR/USD moves should only be a function of the market’s reaction to US payrolls today. There is a non-negligible risk we explore 1.0600, with the pair not having any clear resistance levels until the 1.0780 6-month highs. We are, however, getting the feeling that markets are ignoring at least one warning sign for the Euro.”

“TTF contracts are trading at one-month highs now and may see further upside volatility in the near term as temperatures in northern Europe are expected to fall. A significant recovery in gas prices would likely make the recent rally in EUR/USD unsustainable.”