ING Research discusses the EUR outlook and maintains a bearish bias on the EUR in the near-term.
EUR/USD failed to find any positives from last night's FOMC even though US yields softened a little. The unrelenting negatives emerging from the gas crisis no doubt continue to weigh on the euro and suggest EUR/USD may struggle to hold gains over 1.02," ING notes.
"Fund managers continue to believe the euro is undervalued - but they have been saying that since 2018. And we think the gas crisis and terms of trade shock has driven a lower fundamental value for EUR/USD," ING adds.