Euro: Elusive recovery prospects against US Dollar – ING

Francesco Pesole at ING observes that EUR/USD has moved back above 1.120 on Dollar softness, but the Euro still struggles against other European currencies as markets keep pricing a French fiscal premium. He argues that French political and bond-market risks may persist, and ING still sees scope for EUR/USD to test the 1.110/1.112 area in the near term.