EUR/USD remains primarily a Dollar story. Economists at ING believe that the pair could slide to the 1.0650/1.0700 area later this week.
Lagarde’s speech may be a non-event
“Despite having survived the US CPI risk event, we continue to see some downside risks in the near term on the back of raising bets on Fed tightening and a lack of drivers from the Euro side.”
“We don’t think that today’s speech by European Central Bank President Christine Lagarde will drive major market moves.”
“We see room for EUR/USD to slip back to 1.0650/1.0700 by the end of this week on the back of a strengthening Dollar.”
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