Euro Trading Range-bound Ahead of FOMC Minutes

The Euro has hit a ceiling against the US Dollar due to high natural gas prices and upcoming Federal Reserve minutes. According to Chris Turner at ING, investors are cautious about pushing the EUR/USD rate higher than its current level of just above 1.16.

Turner expects a short-term trading range between 1.1520-1.1580 for the Euro against the Dollar. He notes that despite recent economic positives in the eurozone, high energy prices are boosting expectations of a 25bp hike from the European Central Bank in September and another 25bp hike by early next year.

ING maintains its forecast for EUR/USD at 1.17 by end-September and 1.18 by year-end.