EUR/USD to trace out something like a 1.0650-1.0720 range barring a major surprise in the Eurozone CPI – ING

The market is speculating about a soft Eurozone flash CPI number today. Economists at ING discuss EUR/USD outlook ahead of the inflation report.

1.05/1.07 area should prove a base for EUR/USD this summer

“Consensus expects the headline to drop to 6.3% year-on-year from 7.0% with the core falling to 5.5% from 5.6%.” 

“Barring a major surprise in the Eurozone CPI data, we can probably see EUR/USD tracing out something like a 1.0650-1.0720 range today – i.e. a holding pattern ahead of tomorrow's NFP data.”

“Bigger picture, we reiterate that this 1.05/1.07 area should prove a base for EUR/USD this summer – given that conditions are nowhere near as severe as those that drove EUR/USD so much lower this time last year.”

See – Eurozone HICP Preview: Forecasts from four major banks, sharp drop in inflation