Economists at ING analyze EUR/USD outlook.

Sticking to 1.09 for now

EUR/USD appears to have found an anchor around 1.0900, which likely signals some reluctance for markets to take the pair sustainably above the benchmark 1.10 level, given uncertainty about the Fed’s tightening peak, but still mirroring the support offered by the very hawkish ECB messaging.

The only speech by ECB officials scheduled today is one by Joachim Nagel, who already delivered some hawkish remarks yesterday, saying the tightening cycle has still some way to go given upside risks to the risk outlook.