EUR/USD: Targeting 1.30: 'It's More A Question Of How, Not if We Get There' - ING

ING FX Strategy Research maintains its strong bullish EUR bias through 2018.

"The broader fundamental reasons for a stronger EUR in 2018 : (1) above-potential Eurozone growth, (2) greater European integration, (3)structural and financial reforms and – most importantly – (4) the markets’ general underestimation of the pace and extent of ECB policy normalisation," ING argues. 

"The easing of short-term political risks and a resilient Eurozone economy should give way to a higher EUR. We expect forward-looking FX markets to price in the ECB’s next policy steps this summer (call it Sintra Part II)– and that will see EUR/USD trading at 1.25," ING adds. 

"All of this means that we’re looking for EUR/USD to gravitate towards 1.30 by end-2018 – and for us, it’s more a question of how, not if, we get there," ING concludes. 

Source: ING Global Markets Research