EUR/USD edged lower and closed in negative territory at around 1.0650 on Tuesday. However, economists at ING expect the pair to move back higher toward 1.0700-50 before the weekend.

Support around 1.0640-1.0660 is enough of an encouraging sign

“We think that, at this stage, support around 1.0640-1.0660 is enough of an encouraging sign for EUR/USD given the strength of the Dollar against other pro-cyclical currencies.”

“A hawkish surprise in the FOMC minutes and/or more geopolitical risk being priced in would likely put the 1.0600 support at risk. But unless those two risks materialise, a good Ifo reading in Germany today and stabilisation in sentiment may actually start to favour a move back to 1.0700-1.0750 before the weekend.”