EUR/USD stays relatively quiet below parity. Economists at ING expect the pair to edge lower towards the 0.9910/20 zone.

A dovish 75 bps hike?

“The ECB hiked rates by 75 bps, but in some ways, it could have been described as a dovish hike. Certainly, interest rate markets took note of the reference to 'substantial progress being made in withdrawing monetary accommodation' and took 30 bps off the pricing of the terminal ECB rate, which is now priced at 2.50%. We still think that it is too high.”

“For today, EUR/USD might bounce around a little as ECB hawks brief the media that the central bank's statement was not quite as dovish as the market has interpreted. But we think the dollar should stay supported into next week's FOMC meeting and would favour EUR/USD edging down today to the 0.9910/20 area – marking the top of a bear trend channel which was recently broken.”