EUR: Speculation of 1.20 on the rise – ING

EUR/USD finally broke above the 1.163 area, and faces equally harsh resistance around 1.170, a crowded strike level for long-euro options, but now, EUR is above this level, ING's FX analyst Francesco Pesole notes.

EUR/USD may target the 1.20 level

"The euro might have drawn marginal support from NATO agreeing on the 5% defence spending target and Trump sounding broadly conciliatory towards its allies (with the exception of Spain)."

"But in practice, EUR/USD remains almost entirely a USD story. The eurozone calendar is also quite light today, while Schnabel and Guindos are all scheduled to speak (they might not all touch upon monetary policy, though)."

"A clearing of the 1.170 level should set the sights on 1.20, although some further deterioration in US-specific factors may well be necessary to get there."