The EUR/USD pair maintains its support above the 1.0800 level, but economists at ING are cautious about potential downside risks in the coming days, particularly in light of Thursday’s European Central Bank (ECB) developments.
Expressing concerns over a possible dip in the Euro, ING analysts anticipate downside pressure as the ECB outlines the conditions for a potential rate cut in June. The combination of these ECB considerations and scheduled speeches from Federal Reserve officials this week leads the analysts to lean towards a scenario where EUR/USD concludes the week hovering around the 1.0800 mark.
While the Eurozone data calendar for today is relatively light, and the significance of the January Producer Price Index (PPI) release as a market mover is doubted, market participants are advised to remain vigilant as the week unfolds, given the potential impact of central bank announcements and related factors on the EUR/USD pair. Traders and investors are encouraged to stay attuned to unfolding developments and the nuances of ECB messaging to navigate potential shifts in the currency pair’s dynamics.
