EUR/USD bounced off a low at 1.0613 on Friday. Economists at ING believe that a hawkish set of FOMC minutes is needed to drag the pair down toward 1.05.

PMIs in focus this week

“This week, the Eurozone focus will be on business confidence in the form of PMIs and the German Ifo. The PMI readings are seen hovering around the 50 area and the market may take more notice of the Chinese February PMI readings which come out later next week.”

“The Dollar rally might have come far enough for the time being and EUR/USD found good demand ahead of 1.06. It will probably require quite a hawkish set of FOMC minutes on Wednesday for EUR/USD to break towards 1.05 – where we expect to see good demand ahead of a EUR/USD rally in the second quarter.”