EUR: Consolidation with modest downside risks - ING

Analysts at ING expect EUR/USD to hover around the 1.1700 level this week with modest downside risks.

Key Quotes

“Following the strong US wage growth data last week, the focus will shift to US CPI (Friday) - where we and the market look for an increase to 2.2%. A recovery in US inflation data may support the USD, though we remain sceptical about whether one month's data is game changing for the broader US economic outlook.” 

“Politics will likely overshadow ECB policy for EUR markets this week as media reports suggest that a swift resolution over Catalan independence looks unlikely at this stage. There will be some focus on President Draghi's speech (Thursday), with investors still looking for hints over the central bank's taper options ahead of the Oct ECB meeting. Any signal that QE tapering will remain in place “for longer” could keep EUR upside in check for now.”