EUR/USD closed in negative territory on Monday and seems to have gone into a consolidation phase near 1.0850. Economists at ING expect the pair to continue trading around this level.

Dollar may stay broadly supported going into the FOMC meeting

“The Dollar may stay broadly supported going into the FOMC meeting. The Euro, however, may show more resilience than other G10 peers (especially high-beta currencies) given the shift in the inflation narrative in the eurozone which can surely fuel ECB hawkish speculation.”

“EUR/USD may hover around the 1.0850 handle until tomorrow’s FOMC.” 

“Our commodities team just revised their gas price forecasts, now expecting TTF to stay below 80 EUR/MWh throughout 2023. This is a bullish scenario for eurozone sentiment and the Euro in the medium term.”