EUR/USD should hold support down at 1.0700 – ING

EUR/USD remains around the 1.0750 mark. Economists at ING analyze the pair’s outlook.

High ECB inflation forecasts provide little support
The Euro received a little support overnight on a Reuters report that the new European Central Bank staff projections being released tomorrow would forecast CPI above 3% next year, compared to expectations of 2.7%. The implication here is that, based on these forecasts, the ECB would likely be more hawkish and supportive of the Euro.

There are many moving parts to Thursday’s meeting. However, the biggest part should be a 25 bps rate hike – which is only 54% priced – and a factor that should see EUR/USD hold support down at 1.0700.