After fully recovering from last week’s losses due to the higher-than-anticipated US January Consumer Price Index (CPI) release, EUR/USD is under scrutiny by analysts at ING.
This week, the focus in the Eurozone will be on two key events: Tuesday’s European Central Bank (ECB) survey of negotiated wage rates and Thursday’s flash Purchasing Managers’ Index (PMI) release for February.
With one week implied EUR/USD volatility at 5%, investors seem to anticipate minimal movement in the currency pair. This suggests that it might not be wise to chase after breakouts.
Based on their analysis, ING suggests that EUR/USD will likely move within the range of 1.0700-1.0800/0810 throughout the week. However, they caution that potential topside movement could occur depending on the outcomes of the Eurozone data events.
