EUR/USD to stay slightly bid in a 1.0780-1.0840 range – ING

EUR/USD rose to a two-week high just below 1.0840. Economists at ING analyze the pair’s outlook.

Wage growth is not falling as quickly as inflation

Today sees Eurozone consumer confidence for February. A mild improvement is seen here. And if there is a ray of light for the Eurozone economy it may be that wage growth is not falling as quickly as inflation and that there may be a boost from rising real incomes after all.

On the day, perhaps we should not get too excited by a little Euro strength and perhaps the default view should be that EUR/USD stays slightly bid in a 1.0780-1.0840 range.