EUR/USD is moving sideways in a relatively tight range below 1.1350 early Monday. A break under 1.1300 would open up the 1.1250-00 area, economists at ING report.

Risks tilted to the downside

“A break below 1.1400 in EUR/USD last week is likely signalling that the European Central Bank members’ recent attempt to cool down excessive hawkish speculation has eventually got to the euro. The common currency looks a bit more vulnerable at this stage, also due to its sensitivity to the Ukrainian situation.”

“Another break lower – below 1.1300 – could generate some further bearish momentum in EUR/USD that could extend to the 1.1200-1.1250 area should markets scale back bets on summer tightening by the ECB.”