EUR/USD to consolidate within 1.13-1.15 into the March ECB meeting – ING

Economists at ING think that the post-FOMC 1.11-1.13 range in EUR/USD has now given way to a 1.13-1.15 range, which may hold into the March ECB meeting.

Less downside risks, but upside room remains limited in the longer-term

“With the ECB dropping its forward guidance and markets heavily speculating on 2022 tightening, EUR/USD may find consolidation within the 1.13-1.15 range in the run-up to the pivotal 10 March ECB meeting.” 

“We continue to see some moderate downside risk for EUR/USD for the remainder of the year, although we acknowledge that sub-1.10 levels now look too extreme, and instead favour a flatter profile around 1.12-1.13 into year-end.”