EUR/USD is becalmed above 1.09 and waiting for the next significant input. Economists at ING analyze the pair’s outlook.

Little follow-through buying as yet

Given a light US and Eurozone calendar this week, EUR/USD may get dragged around by GBP/USD on the release of UK CPI data tomorrow and the Bank of England (BoE) meeting on Thursday.

EUR/USD has just about held above the 1.0910/30 support levels but really needs to push ahead today to confirm bullish momentum. Otherwise the slightly bearish risk environment and strong Dollar narrative can suck EUR/USD back down to the 1.0800/0850 area later this week. 

However, there seem few catalysts for a stronger Euro today and ECB speakers seem unlikely to alter expectations that the ECB may hike twice more by the end of this year.