EUR/USD: the euro could fall back towards 1.12 according to ING

ING expects the EUR/USD to return to 1.12 in the coming months, guided by the dollar's modest strength on the forex.

"There is very little to say about the euro today, except that: (a) politics seems suspended until the May European elections and (b) weak growth does not present Europe as a clear winner of the shift of investors out of the US asset markets and the dollar.

The EUR/USD could return to the 1.12 zone in the coming months.

The biggest positive surprise for the European currency (not our benchmark scenario) could emerge from discussions on Brexit - where a political path to a second referendum is developing. There is very little clarity on this, but a EUR/USD rise in the 1.18 zone, led by the GBP is an external risk that shouldn't be overlooked."