EUR/USD should be able to prevent much more pressure on the 1.0800 support – ING

EUR/USD moved towards the 1.0850 mark in Monday's session. Economists at ING analyze the pair’s outlook.

EUR/USD set to stabilise around or modestly above 1.0850

Inflation numbers will be released in the next ten days in the Eurozone, with the EZ-wide March CPI estimate released on April 3. Barring major surprises, markets should continue to gain confidence about a June cut (21 bps already in the price), meaning that the EUR may lag other currencies that have short positioning and/or have higher beta to sentiment once a Dollar decline materialises. In our view, this can happen in the next month.

For this week, EUR/USD should be able to prevent much more pressure on the 1.0800 support and stabilise around or modestly above 1.0850.