EUR/USD to test the lower end of the 1.0800-1.0875 range ahead of the FOMC – ING

EUR/USD got a lift off the 1.0800 area on Tuesday. Economists at ING analyze the pair’s outlook.

Soft January CPI releases from Germany and France could fan fears of an April ECB rate cut 

Today’s key releases are the French and German CPI reports for January. We think these will come in lower on base effects and keep the door open for an April ECB rate cut. That is not our house view, but does mean that EUR/USD should end the week heading into Friday’s US jobs data on the soft side. 

Our baseline view favours EUR/USD testing the lower end of the 1.0800-1.0875 range ahead of the FOMC.