EUR/USD can stabilise around current levels today – ING

EUR/USD climbed above 1.0750 on Thursday. Economists at ING analyze the pair’s outlook.

Lagarde confirms cautious approach

ECB President Christine Lagarde reiterated the need for caution when discussing monetary easing on Thursday. We still think markets are right to price in a first cut in June but are overestimating the size of total easing, which we expect to be 75 bps vs 115 bps priced in.

The good EUR/USD momentum is a mere reflection of the Dollar correction. 

We feel EUR/USD can stabilise around current levels today but still faces some downside risks in the short term.