EUR/USD is holding up at 1.07 despite the huge move in US rates.  The direction for the pair is set to be determined almost solely by how the Fed “overreacts”  to the SVB fallout, according to economists at ING.

EUR/USD seen at 1.08-1.09 by the end of this week

“Based on the information we have at the time of writing, we would expect at least some unwinding of the recent hawkish rhetoric by the Fed, which could help stabilise sentiment and translate into a stronger EUR/USD.”

“The size of a EUR/USD rally entirely depends – in our view – to the Fed’s ‘overreaction’ to the recent turmoil.” 

“For now, we target 1.08-1.09 by the end of this week.”