Euro Bulls Eye 1.18 as Fed Tightening Fears Ease

ING's Francesco Pesole remains optimistic about the Euro (EUR) against the US Dollar (USD), citing the Federal Reserve's likely reluctance to further tighten monetary policy.

The EUR/USD is expected to continue its upside bias, with targets set at 1.160 in coming weeks, 1.17 in autumn, and 1.18 by year-end.

However, Pesole warns that the lack of clear catalysts and Gulf risks could keep the pair confined to tight ranges and low volatility.

The absence of a clear catalyst may prolong the range-bound nature of EUR/USD, with trading volumes testing recent lows.