ING Research discusses EUR/USD outlook and maintains a tactical bearish bias around current levels.
"The US CPI release allowed EUR/USD to bounce off the range low at 1.1700/1710 - but there does not seem a case for a strong rally. As above, there still seems interest to take advantage of the low volatility environment with carry trades - and EUR funding looks attractive. Indeed, the biggest chance for the EUR to rally over coming months will probably come through an asset market correction and a large position unwind," ING notes.
"Whilst conditions stay quite benign, EUR/USD may struggle to get back above the 1.1780/1810 area now and remains vulnerable to a broader number of Fed members making the case for early (and perhaps shortened) tapering," ING adds.