The Dollar will once again be driving EUR/USD. The pair could surge above 1.1000, but may find it difficult to enjoy further gains, economists at ING report.

A below-consensus ISM services reading could trigger a break above 1.1000

“A below-consensus ISM services reading could trigger a break above 1.1000, although the sustainability of rallies beyond that level in the coming weeks would need to be tested against the markets’ confidence to consistently unwind defensive dollar positions at a time when fresh financial turmoil and tighter liquidity remain non-negligible risks.”

“On the European Central Bank side, we’ll hear from the ECB Governing Council members Boris Vujcic and Bostjan Vasle, as well as Chief Economist Philip Lane. The risks of surprise remarks by ECB officials appear to have moderated lately as most key speakers have recently aligned (in line with their position in the dovish/hawkish spectrum) with a pledge to keep raising rates.”