Federal Reserve Chair Jerome Powell’s speech is set to overshadow Eurozone inflation data. In the view of economists at ING, the EUR/USD pair could accelerate its decline on a dip under 1.0300.

Inflation plays second fiddle to Powell

“The impact of the inflation story on the EUR/USD has been, predictably, limited. External factors and Dollar dynamics continue to drive the pair's performance, and we see downside risks today given that Fed Chair Powell is scheduled to speak later.”

“A break below 1.0300 could fuel more bearish momentum, bringing EUR/USD back to the 1.0200/1.0250 levels seen earlier this week.”