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In their latest client note, analysts at ING Bank offer their outlook on the EUR/USD pair, citing that there is further downside in play, in the wake of the recent downward revision to the Euro area growth forecasts by the European Commission.

Key Quotes:

“Not many reasons to be cheerful.  

Euro seems unable to get any respite.

A stream of weak EZ and German activity data.

Another hit by the across the board downward revision of European Commission growth forecasts for major EZ countries.

Italy in particular … 2019 growth forecast slashed to 0.2%.

With the current mild rebound in USD under way, we continue to look for lower EUR/USD “¦  towards the 1.12 level.”