EUR/USD probably risks a drift to the 1.0800 area pre-FOMC – ING

EUR/USD ended lower on Tuesday despite a bounce in the German ZEW investor survey back to levels last seen in early 2022. Economists at ING analyze the pair’s outlook ahead of the FOMC meeting.

ECB big hitters on the wire today

Most likely positioning ahead of the FOMC meeting is dominating and the Dollar is playing a little catch-up with last week’s rise in higher short-term rates. 

Out of the Eurozone today we have five European Central Bank speakers. Amongst those five are the big hitters Christine Lagarde, Isabel Schnabel and Philip Lane. Expect a repeat of the central message that more data is required before the ECB can seriously consider a rate cut at the June meeting. 

EUR/USD probably risks a drift to the 1.0800 area pre-FOMC.