EUR/USD: the pair should find support in the short term and be drawn toward 1.12 (ING)

ING recommends buying EUR/USD declines to aim for a rebound towards 1.12 in the short term.

"The election of Macron as President of France was widely expected, and attention is now turning to the legislative elections of 11 and 18 June. However, French political risk was one of the major factors that kept the EUR under pressure.

According to our view that a 10 to 20 point increase in short US rates should not weigh down on the EUR/USD, our bias is now for buying the EUR/USD on downturns. We believe investors will look for reasons to push the EUR/USD up towards 1.12, even though the eurozone's economic calendar is light this week."