Economists at ING discuss EUR/USD outlook ahead of Fed and ECB meetings.

ECB may struggle more to convey a hawkish message

We expect the combination of a hawkish hold by the Fed and a hawkish 25 bps hike by the ECB to leave EUR/USD trading closer to 1.0700 than 1.0800 as we expect the FOMC to offer reasons to stay attached to Dollar longs. 

The ECB may struggle more to convey a hawkish message after inflation and growth data came in on the softer side