EUR/USD to grind lower towards the next big support at 1.0350 – ING

EUR//USD continues to languish near the lows. Economists at ING believe that the world’s most popular currency pair could test the 1.0350 support.

Little the ECB can do about the soft EUR/USD

“European Central Bank President Christine Lagarde has all but confirmed that the ECB is ready to start hiking rates in July, pointing to a three-hike scenario and the deposit rate ending the year at 0.25%. However, that scenario has been well priced for some time and is providing little support to the euro. Instead, the pro-growth euro is being battered by growth headwinds from the war in Ukraine and China's self-inflicted slowdown.”

“On a day when pro-cyclical currencies are on the back foot, EUR/USD looks as though it can grind lower on its multi-day way towards the next big support at 1.0350.”