ING Analyst: Euro Upside Against Dollar Appears Limited

Francesco Pesole of ING said the euro has limited room to extend its recent gains against the U.S. dollar unless there are clear signs that tensions in the Middle East are easing. According to Jin10, he said rising natural gas prices, which have a greater impact on the euro area’s trade conditions than crude oil prices, are weighing on the euro’s ability to strengthen independently. Pesole added that selling is likely to emerge around $1.1500 for the euro against the dollar, and said the exchange rate is more likely to stabilize within a range than break higher at this stage.