EUR/USD trades in negative territory slightly below 1.0600. The pair could challenge the 1.0500 level, analysts at ING report.

Hawkish expectations for ECB tightening to support EUR

“Markets are currently pricing in around 130-140 bps of tightening before reaching the peak. This could offer some floor to the Euro.” 

“We expect any re-strengthening of the Dollar to see high-beta commodity currencies more at risk than the Euro for the time being. Still, the risks of 1.0500 being tested in the near term remain elevated.”