ING Analyst Predicts Further Decline for EUR/USD Amid Interest Rate Spread Concerns

On May 22, ING analyst Chris Turner reported that the interest rate spread between the U.S. and the Eurozone might further disadvantage the euro against the dollar, potentially leading to an expanded decline for the EUR/USD currency pair. According to Jin10, Thursday's weak Eurozone purchasing manager surveys have raised doubts about how much the European Central Bank can increase rates. Meanwhile, the market is increasingly betting on Federal Reserve rate hikes. Turner stated that if the EUR/USD falls below 1.1575, it might test 1.1500 again. Additionally, any progress in Middle East peace talks could hinder corrective rebounds around 1.1660/90, as the impact of the energy shock is expected to persist in the coming months.