EUR/USD hovers slightly below 1.0900. Economists at ING analyze the pair’s outlook.
PMIs on Thursday could potentially offer some direction to EUR/USD into the weekend
EUR/USD is poised to be primarily influenced by US events this week, although insights from the Eurozone calendar remain pertinent. While today’s final February CPI figures are not expected to yield surprises, attention shifts to Tuesday’s ZEW survey to gauge the state of the struggling German economy. Additionally, Thursday’s PMIs could provide crucial directional cues for EUR/USD post-FOMC digestion into the weekend.
Moreover, a flurry of European Central Bank speakers, including President Christine Lagarde on Wednesday, adds to the market’s anticipation.
Our analysis suggests EUR/USD may experience a softening leading up to the FOMC meeting. However, we anticipate it could still close the week within the 1.0850/1.0900 range.
