EUR/USD: Hawkish ECB minutes and remarks by Lagarde could support the Euro – ING

EUR/USD is wavering around 1.0800. Economists at ING expect to see some consolidation/further upside in the pair by the end of the week.

EUR/USD could trade around 1.0850/1.0900

“ECB President Christine Lagard will speak in Davos today, and there is a good chance she will reiterate the ECB’s hawkish stance despite lower energy prices.”

“Dovish speculation should be further challenged by the release of the December 2022 ECB meeting minutes, as the details of the dissent to a ‘too conservative’ 50 bps hike should emerge, as well as guidance to ‘multiple’ 50 bps increases.”

“We expect to see some consolidation/further upside in EUR/USD by the end of the week when the pair could trade around 1.0850/1.0900.”