EUR/USD continues to move up and down in a narrow channel at around 1.0550. Economists at ING expect the pair to remain within 1.0500-1.0600.

ECB division could prove costly

“We were surprised to see comments from ECB dove, Ignazio Visco, yesterday openly criticising ECB colleagues for making forward-looking statements about monetary policy. Public dissension amongst monetary policymakers is never welcomed by currency markets. And presumably, ECB President Christine Lagarde's job will only become harder on this front as the ECB takes rates higher into the summer.”

“For the time being expect EUR/USD to trade in a 1.0500-1.0600 range and tomorrow's US jobs report will determine whether it needs to break below 1.0500.”