EUR/USD to trace out a 1.0700-1.0800/0810 range this week – ING

EUR/USD has now completely recouped last week's losses on the above-expected US January CPI release. Economists at ING analyze the pair’s outlook.

Wage data and PMIs in focus this week

In the Eurozone we are very much interested in i) Tuesday's ECB survey of negotiated wage rates, and ii) Thursday's release of the flash PMIs for February.

One week implied EUR/USD volatility at 5% suggests investors think EUR/USD is going nowhere fast. That is a sign to avoid chasing break-outs. 

Our baseline would assume EUR/USD traces out a 1.0700-1.0800/0810 range this week. But look out for those Eurozone data event risks for a possible topside move.