As the week unfolds, the Euro braces itself for a series of impactful events, with economists at ING providing insight into the shared currency‘s prospective trajectory.
The week’s agenda is robust with significant input. Notably, the European Central Bank (ECB) meeting on Thursday takes center stage, flanked by the latest ECB bank lending survey on Tuesday and the release of flash PMIs for January on Wednesday. These two datasets, which notably influenced the Euro’s performance in the preceding autumn and winter, are poised to be scrutinized closely in anticipation of the forthcoming ECB policy meeting.
ING’s baseline analysis suggests that EUR/USD is likely to hover around the 1.0900 levels as the ECB endeavors to realign its approach, emphasizing a dependence on data for future policy decisions.
Looking specifically at EUR/USD, the currency pair appears to be establishing a near-term trading range, projecting a band between 1.0850 and 1.0960. The forthcoming week is poised to be a critical juncture, as market participants keenly observe these key economic indicators and the ECB’s policy stance to gauge the Euro’s trajectory in the immediate future.
