We believe there are some downside risks for the pair as markets struggle to price in more Fed rate cuts without data providing some help.

We are expecting an announcement by the ECB on the results of its framework review. Today’s decisions will have implications on how monetary policy impacts long-end Eurozone rates, but should not have direct short-term FX implications. Some dovish comments today, combined with some rates-driven support to the Dollar could lead to EUR/USD retesting 1.0900 soon.