EUR: ECB's infectious optimism – ING

The euro has remained reasonably well supported after Thursday's European Central Bank meeting, ING's FX analyst Chris Turner notes.

EUR/USD to trade well within Friday's 1.1370-1.1455 range

"Here, President Christine Lagarde painted a picture of eurozone growth even in the face of global uncertainty. The market continues to price just one more ECB rate cut, but not until December this year. And we suspect more focus on German fiscal stimulus when a new budget is released later this month should keep the euro supported."

"Our recent poll result of 57% of respondents expecting EUR/USD to end the year in a 1.15-1.20 range is one of the highest conviction views we've seen so far. Our baseline view currently is one of an ongoing 1.10-1.15 range this year, where a later start to the next bout of Fed easing can provide the dollar a little support. Yet the risk to our baseline EUR/USD view is clearly to the upside."

"On the eurozone calendar this week is the release of the eurozone wage tracker on Wednesday and a whole host of ECB speakers. Expect EUR/USD to trade well within Friday's 1.1370-1.1455 range, given today's European holiday."