EUR/USD trades above the 1.08 mark. Economists at ING expect the pair to edge higher toward the 1.10 level.

Schnabel keeps hawkish tone going

“Isabel Schnabel reinforced her profile as one of the most hawkish members of the ECB governing council yesterday, as she said she wanted the ECB March statement to include a reference that more hiking was possible. Her comments likely helped push market rate expectations in the eurozone a little further.”

“We think EUR/USD can retain some bullish momentum on the back of the ECB's hawkish narrative and calmer investor nerves on the European banking situation.”

“Our view remains that 1.10 can be reached quite soon, although bumps along the way are highly likely.”