EUR/USD should remain almost solely a function of USD moves and Fed rate expectations, economists at ING report.

Too early for a move above 1.10

EUR/USD is eyeing the key 1.10 level, but we suspect that any breaks above that level will prove unsustainable as the rates picture remains broadly supportive for the Dollar until the US growth picture turns decisively negative.

We are not convinced the pair has enough backing on the rates side to trade sustainably above 1.10 and favour instead a correction below 1.0900 in the coming days.