EUR/USD: 1.0500 can be broken today or tomorrow – ING

The Powell-led EUR/USD drop yesterday means that the next key support for the pair is now 1.0500. This level could be broken in the next two days, economists at ING report.

Euro has not got many weapons to fight the Dollar strengthening at the moment

“The Euro hasn’t got many weapons to fight the Dollar strengthening at the moment. The Eurozone’s data calendar lacks market-moving releases and a speech by Lagarde today does not seem to have much to do with monetary policy. Two of the most dovish ECB members – Ignazio Visco and Fabio Panetta – are the other scheduled speakers today, so expect little support to the Euro on that front.”

“Today and tomorrow will offer the best opportunity – in our view – to press below 1.0500, while we favour a EUR/USD rebound on a softer US jobs report on Friday.”