EUR/USD Faces Crucial Test at 1.1550 as Analysts Differ on Outlook

Foreign exchange analysts at ING predict that the Euro-to-Dollar (EUR/USD) exchange rate may drop below 1.1500, despite Scotiabank's more optimistic forecast of a range between 1.1500 and 1.1600.

ING's short-term fair-value model suggests the pair is currently overvalued by around 0.5% to 1%, but notes that this 'is not a very strong directional signal.'

The bank believes the Dollar has regained some ground after last week's sell-off and expects 'room for some USD recovery in the next couple of days,' particularly if US labour data is weaker than expected.

ING also sees attention remaining on US employment releases, with ADP and payrolls figures key to determining whether the Dollar will continue to lose value.