EUR/USD hovers slightly below 1.0900. Economists at ING analyze the pair’s outlook.
EUR/USD will be primarily driven by US events this week, although some inputs from the Eurozone calendar should not be overlooked. Final February CPI figures today should not surprise, but Tuesday’s ZEW survey will be interesting to check the state of the struggling German economy. As will PMIs on Thursday, which could potentially offer some direction to EUR/USD into the weekend after the FOMC has been digested.
There are also plenty of European Central Bank speakers to hear from, including President Christine Lagarde on Wednesday.
Our view on EUR/USD is that it can trade on the soft side into the FOMC, but could still end the week within the 1.0850/1.0900 range.