EUR/USD could drop back to the 1.0750 handle – ING

It is European Central Bank decision day. Economists at ING analyze how the policy announcement could impact the Euro.

EUR/USD faces some moderate downside risks

There is still interest for the ECB to sound hawkish today, but we suspect that might not be enough to send the Euro higher, and we see some moderate downside risks for EUR/USD today.

We could see EUR/USD drop back to the 1.0750 handle today, although developments on the US data side will continue to drive the large majority of trends in the pair moving ahead, with ECB policy playing second fiddle.

See – ECB Banks Preview: 25 bps, more remains in store