Analysts maintain EUR/USD targets at 1.170 for next week’s Fed meeting and 1.180 by year-end, noting the pair remains modestly undervalued. Russia-Ukraine negotiations show little progress, ING's FX analyst Francesco Pesole notes.

Peace talks stall despite constructive signals

"We continue to have 1.170 as our EUR/USD target for next week’s Fed meeting and 1.180 as our year-end target. Seasonality should help, but it’s also worth noting that our short-term fair value model continues to point to around 1.1% undervaluation in the pair."

"The week hasn’t led to any major progress on the Russia-Ukraine peace talks so far. The meeting between US envoys and Russian officials in Moscow has led to a cautiously constructive tone, but with little indication that we may be close to a breakthrough. We still think the euro has room to benefit should a truce deal be reached by Christmas."