EUR/USD closed above 1.0700. The ability of European regulators to restore some calm to the AT1 bond market appears a necessary condition to keep the pair supported, according to economists at ING:

Impact on the Euro of ECB speakers is probably not very significant at the moment

“The impact on the Euro of ECB speakers is probably not very significant at the moment. First, unlike in other instances, it seems like there has been no communication gap between markets and Lagarde at last week’s press conference. Second, higher rate expectations on the back of hawkish rhetoric are not a short-term EUR driver in the short-term at the moment, as the common currency is trading strictly in line with risk sentiment and on news about the banking sector.”

“The ability of European regulators to restore some calm to the AT1 bond market appears a necessary condition to keep EUR/USD supported, even though we think some USD recovery is possible into the Fed meeting.”