EUR/USD wants to test the 1.0865/1.0900 area, but the case for any higher levels is yet to be made – ING

EUR/USD has been doing a little better, largely on the back of a better investment environment. Economists at ING analyze the pair’s outlook.

PMIs and ECB minutes in focus

The highlight of today's session will be the release of European PMIs. A modest uptick here is expected today, but unless the Eurozone composite PMI can make a run at the 50 level, we doubt EUR/USD will get too much joy from the release. 

Equally, we doubt that the release of the European Central Bank (ECB) minutes will move the needle on market pricing of around 100 bps in ECB rate cuts this year. For reference, our economists are only looking for 75 bps of easing.

EUR/USD is currently breaking above short-term resistance and looks like it wants to test the 1.0865/1.0900 area, but the case for any higher levels is yet to be made.