EUR/USD is stuck in a range - ING

EUR/USD appears stuck in a rather small trading range, as some recovery in the dollar was primarily driven by the underperforming AUD, NZD and JPY yesterday, while the likes of EUR, CAD and NOK held stable, said ING FX Strategist Francesco Pesole.

"The Swedish krona started the week on a stronger foot after Riksbank Governor Erik Thedeen said that a rate cut in June was not on the table, pouring cold water on easing expectations (now only 30%) after April inflation came in lower than expected. Thedeen has generally stood on the hawkish/cautious side of the policy discussion in Sweden, and has remained very vocal on the risks of a weaker krona. EUR/SEK at 11.61 is good news for the Riksbank, as its May rate cut gamble is so far paying off thanks to lower USD rates and better risk sentiment. If policymakers rule out a June cut in further communication, SEK can probably move more in line with NOK, albeit still facing grater domestic downside risks."

"Back to EUR/USD, we are not expecting major swings today as the data calendars in the eurozone and US are light. A speech by European Central Bank President Christine Lagarde today at an event in honour of Janet Yellen may not touch on monetary policy at all."

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