0815 GMT - The euro is likely to stabilize against the dollar rather than extend its recent gains as it looks overvalued, ING's Francesco Pesole says in a note. ING's models suggest the short-term fair value for the euro sits just below $1.16. This indicates there is probably some, albeit contained, risk premium on the dollar linked to last week's U.S. Treasury announcement about increasing buybacks of long-term securities, Pesole says. That argues against the euro taking another leap higher above $1.17, he says. The euro trades steady at $1.1657, having reached a three-month high of $1.1711 on Friday, LSEG data show.
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