ING Research discusses EUR outlook ahead of the upcoming German Federal Elections.
"This week's risk rally looks to be fading as we close in on the Jackson Hole event. Asian FX and equity gains have slowed a little, meaning that dollar selling pressure (as money is put back to work in EM) has faded. That means EUR/USD looks to be stalling near the 1.1750 area and we do not see a big catalyst for further gains," ING notes.
"One wild card is the result of the upcoming German elections. With the SPD nudging ahead in the polls could we see expectations of looser fiscal policy drive European yields and the euro higher?," ING adds.