EUR/USD to pull back to the 1.0900 mark as a result of combined effect of the FOMC and the ECB impact – ING

Economists at ING assess the impact on the EUR/USD pair of the combination of both the Fed (Wednesday) and the ECB (Thursday) policy announcements.

Moderate downside risks for EUR/USD

“We see room for EUR/USD to pull back to the 1.0900 mark as a result of the combined effect of the FOMC and the ECB impact.”

“The stretched positioning and very hawkish expectations on ECB tightening suggest the balance of risks for the euro ahead of the ECB is slightly tilted to the downside.”