Euro: Lower year-end target at 1.13 against US Dollar – ING

ING’s Francesco Pesole writes that EUR/USD is moderately undervalued versus short-term fundamentals, reflecting a persistent France-related risk premium that could widen if French bonds sell off further. He sees a challenging backdrop for Euro bulls, expects a possible test of 1.110, and notes that ING has revised its EUR/USD forecast down to 1.13 for the fourth quarter of 2026 and first quarter of 2027.