Last week's late bounce in EUR/USD looks to have petered out above 1.06. Economists at ING analyze the pair’s outlook.

EUR/USD to stay lower for a little longer

EUR/USD is set to stay lower for a little longer, meaning that the 1.0490/1.0500 area could easily be retested this week.

Expect the calendar to confirm another set of soft PMIs for Europe in September and focus to switch to whether the European Central Bank (ECB) needs to deliver one final rate hike after all.

There are plenty of ECB speakers this week, and the highlight will probably be President Christine Lagarde speaking at a monetary policy conference on Wednesday.