EUR/USD has not enjoyed too much of a bounce on the back of hawkish comments from three European Central Bank (ECB) members. Economists at ING expect the pair to shrug off the debate over whether the ECB hikes 50bp or 75bp and move within a broad 1.05.10 range.
1.08-1.09 looks like the range for today
“ECB members pointed to the risks of a rate hike in July and presumably the deposit rate ending the year in positive territory – as opposed to the consensus of hikes in September and December and the depo rate ending the year at zero
“ We doubt the debate over whether the ECB hikes 50bp or 75bp this year makes too much difference for EUR/USD – which we expect to trace out a broad 1.05-1.10 range over coming months.”
“For today, 1.0800-1.0900 looks like the range.”