FXStreet (Delhi) – Research Team at ING, suggests that at the point of EUR/USD parity (or marginally below) we call for an end to the multi-quarter EUR/USD decline. Key Quotes “Due to the following reasons: • The Fed is likely to be very sensitive to USD strength and any abrupt moves in USD higher is likely to cause a less hawkish Fed tightening cycle. • Similar to the German bund sell-off in 2Q15, we expect the EZ yields to experience a one-off sharp spike higher in 2H16 as the market will re-price the ECB monetary outlook (towards a less expansionary stance ). • EUR/USD at parity will be extremely undervalued, making it fundamentally difficult for the cross to depreciate further. • Current account dynamics (namely EZ current account surplus) matter.” For more information, read our latest forex news.