Economists at ING analyze EUR/USD outlook.
USD leg will drive most of the EUR/USD moves this week
With ECB members having had the opportunity to clarify their rhetoric at the Sintra symposium last week, this week’s speakers may not have a very strong impact on the Euro, even though markets will be interested in comments following the inflation report for June.
It seems likely that the USD leg will drive most of the EUR/USD moves this week, especially once US data starts to come in.
There is some room for the pair to decline modestly on the back of some Dollar strength, although a big drop below 1.0800 may be premature.
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