EUR/USD has started the new week under modest bearish pressure. Economists at ING expect the world’s most popular currency pair to edge lower towards the 1.1380 zone.

Look out for Lagarde comments

“The US runs a large positive output gap (compared to the negative output gap in the eurozone) and the US tightening cycle will likely be far larger than that seen in Europe. That is why we favour EUR/USD proving toppish near the 1.15 area, rather than calling a major upside breakout.”

For today, the main focus will be comments given by President Lagarde. Should she feel the need to correct any of the sharp adjustments seen in European interest rate markets (and correct the pressure on BTP-Bund spreads), today's introductory comments could present such an opportunity.”

“We have a slight preference for EUR/USD drifting back to the 1.1380 area today.”