EUR/USD: USD Support To Fade Soon; Where To Target? - ING

ING FX Strategy Research notes the USD relatively recovered on Chair Yellen’s comments over the weekend about the anticipated acceleration in inflation and subsequent rate hikes.
Advertisement In that regard, ING expects the USD recent recovery to be fairly short-lived and limited in coming days.
"This is because (a) markets already assign a large probability (70-80%) to a Dec rate hike; (b) limited US data this week that could move USD meaningfully higher.
Target-wise, ING is mildly bullish on EUR/USD near-term targeting a move towards 1.20 in 1-month.