EUR/USD has declined towards the 1.07 level. Economists at ING expect the pair to test this support today.

ECB hawks to the rescue

“EUR/USD has pressed lower and may re-test the 1.0700 support today.”

“We’ll hear from three ECB hawks - Schnabel, Knot and Kazimir – and one ‘dove’ – Villeroy. All in all, a slew of hawkish comments and rate protests should be on the cards today. This could give some modest support to the Euro, but we believe this evening’s speech by Powell will have broader and longer-lasting implications for EUR/USD.” 

“A contraction to the 1.0600-1.0650 area by the end of this week is now looking increasingly likely.”