EUR/USD gained more than a cent since Friday’s new lows in the 1.1120 region. 1.1200 could be a floor into the European Central Bank (ECB) meeting on Thursday, in the view of economists at ING.

Higher yields in the eurzone may continue to offer a floor to the euro 

“Higher yields in the region may continue to offer a floor to the euro heading into the ECB meeting on Thursday. That, however, also raises the bar for a hawkish surprise (and the downside risks for the euro) ahead of the announcement; we continue to see a high probability that President Lagarde will stir well away from signalling a rate hike in 2022.”

“EUR/USD may enjoy a solid floor around 1.1200 before Thursday, even if the dollar starts recovering.”