EUR/USD is drifting around in ranges. Economists at ING analyze the pair’s outlook.

EUR/CHF should be heading to 0.9500/0.9600

We doubt EUR/USD will make a move higher before Friday's US CPI revisions, meaning that 1.0800 should prove good intra-day resistance.

The slightly higher rate environment has seen EUR:CHF two-year swap differentials widen back out to 188 bps and support EUR/CHF. There should be more to come here and we wonder whether speculation builds over a Swiss National Bank rate cut as early as March. We retain a view that EUR/CHF should be heading to 0.9500/0.9600.