ING Research discusses EUR/USD outlook and sees the pair inching back towards 1.05 by the end of this month.

"EUR/USD has held up quite well in the face of this week's dollar strength. Supporting the euro is the prospect of a hawkish European Central Bank meeting tomorrow. While it looks far too early to expect a rate hike, which would damage the bank's credibility, the prospect of a hawkish meeting is lending the euro some support. At least the ECB looks to have taken the decision to get real interest rates higher - unlike its counterparts in Japan," ING notes. 

"On that subject, money markets only seem to be pricing the 25bp hike scenario for the ECB on 21 July. That could easily edge some way towards the 50bp scenario over coming weeks and could nudge EUR/USD back above 1.07 later this week. For the time being, however, we're happy with a 1.05 end-June forecast for EUR/USD on the back of persistent Fed hawkishness," ING adds.