EUR/USD can slip back below 1.0500 even in the event of a consensus NFP – ING

EUR/USD extended the latest rebound and hit 1.0550. Economists at ING analyze the pair’s outlook ahead of the US Nonfarm Payrolls report.

EUR/USD is around 1% undervalued to its market drivers

We currently estimate EUR/USD’s fair value at 1.0650, meaning that the pair is around 1% undervalued to its market drivers, below its 1.5 standard deviation and does not suggest an imminent upward correction.

EUR/USD can slip back below 1.0500 even in the event of a consensus read in US payrolls today. 

See – NFP Preview: Forecasts from seven major banks, losing momentum