EUR/USD lost more than 150 pips on Tuesday before going into a consolidation phase below parity early Wednesday. Economists at ING expect the pair to remain in a 0.9950-1.0050 range.

ECB story struggles to lift the euro

“The ECB will struggle to out-hawk the Fed. That is not a surprise given the US economy went into this inflation crisis with an economy operating above capacity - unlike the negative output gap in the eurozone.”

“The highlight of today's session will be European Commission President, Ursula von der Leyen, unveiling what measures Europe stands to take to address the energy crisis. We doubt these support measures can make a meaningful difference for EUR/USD pricing, leaving it to trade offered in a 0.9950-1.0050 range.”