EUR/USD came under pressure on Tuesday. Economists at ING analyze the pair’s outlook.

Markets may marginally prefer to stay bearish on EUR/USD

Unless we receive some encouraging news from PMIs, or a drop in the Dollar (e.g., caused by an equity rally after Nvidia results), we suspect markets may marginally prefer to stay bearish on the pair as for some pre-Jackson Hole positioning.

EUR/USD is testing the early-July 1.0834 low this morning, a break lower puts the next support at 1.0800 (200-Day Moving Average).