ING Research discusses EUR/USD outlook and maintains a bearish bias in the near-term.
"The EUR was amongst the least hit currencies yesterday as a generalised risk-off environment mostly hit high-beta FX. Surely, no particular support to the EUR is coming from the Sintra ECB Forum, as President Christine Lagarde reiterated her quite relaxed stance about inflationary pressures yesterday whilst warning against “overreacting” such temporary price shocks. Given the lingering dovish stance by the ECB, the FX impact of any more upside surprises in Eurozone’s CPI numbers released between today and Friday (tomorrow we'll see Germany and France’s numbers) may be quite limited," ING notes.
"For today, some improvements in risk sentiment may give some support to EUR/USD, but we think any rebound in the pair may lose steam around the 1.1750 highs seen last week," ING adds.