EUR/USD continues to fluctuate above 1.0500. In the opinion of economists at ING, the pair will struggle to hold any gains over 1.06 this week.

Slight risk of the ECB doing 75 bps rather than 50 bps

“We note there is still a slight risk of the ECB doing 75 bps rather than 50 bps – which would probably help the Euro. But this of course comes after the US CPI/FOMC risk.”

“Given the 10% EUR/USD correction off the late September lows, our preference would be that EUR/USD struggles to hold any gains over 1.06 this week and could end the week lower should US events oblige.”