EUR/USD should trade largely in line with global risk sentiment and US data – ING

EUR/USD edged lower on Tuesday. Economists at ING analyze the pair’s outlook.

EUR/USD to consolidate in a 1.0880/1.1020 range in the coming days

Today, we will keep a closer eye on an online Q&A held by ECB’s Isabel Schnabel at 1400 GMT. Evidence of sticky inflation in the December report suggests she may favour a pushback against rate cut bets should she comment on monetary policy. We could see some short-term benefits to the Euro as hawks voice their inflation concerns, but those have proven to be neither sizeable nor long-lasting in the past months.

The lack of market-moving data releases suggests EUR/USD should trade largely in line with global risk sentiment and US data this week. 

We expect the pair to consolidate in a 1.0880/1.1020 range in the coming days barring surprises on the US inflation side.