EUR: Staying bid despite another ECB rate cut – ING

US Dollar (USD) problems are keeping EUR/USD bid, ING's FX analyst Chris Turner notes.

Above 1.1425, EUR to run up to 1.1500

"This despite the fact that the European Central Bank will very likely be cutting rates on Thursday, and this week's inflation data in the eurozone should come in on the soft side. Here, the flash May eurozone CPI is released tomorrow, where core is expected to drop back to 2.5% year-on-year."

"Also on Thursday will be a meeting of NATO defence ministers in Brussels. The European representatives should be better prepared for further excoriating remarks from the US, and may refocus market attention on the planned big pick-up in defence spending. Additionally, some further colour on German fiscal expansion in late June should also prove euro supportive."

"EUR/USD has some intra-day resistance at 1.1425, above which a short-term run-up to 1.1500 beckons."