EUR/USD continues to consolidate near 1.05. Economists at ING note that the pair is set to continue tracing out a 1.0450-1.0550 range.
“Look out for the German state June CPI state releases today culminating in the national figure and expected to match last month's cycle high at 7.9% year-on-year. Any upside surprises here could give eurozone short-end rates and the euro a lift as well.”
“Also in focus today will be the June reading for eurozone economic, industrial and services confidence. These have all been holding up quite well. Yet cracks have appeared in business confidence this month and any downside surprise here may question whether the ECB can be as aggressive as the market is pricing.”
“EUR/USD to probably continue tracing out a 1.0450-1.0550 range, barring any large fixing flows.”