EUR/USD broke below 1.0700 yesterday before rebounding. Economists at ING still expect the pair to see levels below this week.

EUR/USD mostly a Dollar story

“Yesterday’s decision by the European Central Bank to cut rates on government deposits to encourage fund withdrawals should not have strong implications for the Euro for the moment.” 

“The process of hawkish re-tuning by ECB officials after last week’s market reaction to President Christine Lagarde's press conference looks likely to continue, although it appears to have been largely factored in by markets.”

“We think that further explorations below 1.0700 are possible in the coming days, but it looks like they will mostly depend on Dollar moves.”