EUR/USD it was rejected around 1.0800 on Monday. Economists from ING analyze the pair's outlook.
The growth outlook is not so important for the ECB
We like the chance of a slight upside in the pair this week.
A risk to this view is the ZEW survey published today in Germany. The consensus is aligned with a slight increase in the expectations index and a small decrease in the current situation index. The release has a history of market movement, but the longer-term impact on ECB rate expectations is less.
Markets are broadly positioned for moderate economic growth in the Eurozone, and particularly in Germany, and we don't think the ECB would meaningfully change its story if the outlook worsened a bit.