EUR/USD: Signs of recovery in China could provide the Euro with some support – ING

Economists at ING believe that some kind of recovery in China could lift the Euro. 

Can China come to the Euro's rescue?

“We think EUR/USD is relatively cheap given the massive reversal in energy prices over the last year and that, in time, the 1.05/1.07 area will come to be seen as a summer base. Helping that proposition would be some kind of recovery in China.” 

“Official May Chinese PMI figures are released later this week. A bounceback here, helping to reverse the recent run-up in USD/CNH, could provide the Euro with some support.”