EUR: EUR/USD remains the 'washing machine' – ING

The EUR/USD market is sometimes referred to as a 'washing machine' where global trade and portfolio flows meet and cancel each other out, ING’s FX analyst Chris Turner notes.

EUR/USD to consolidate in a 1.09-1.11 range

"And EUR/USD has not been a big player in this global trade upheaval. It would be if the idea of a 'sell America' theme were to fully unfold, where the euro asset markets would be one of the few available to absorb any exodus from US assets. Interestingly, it does seem that ECB officials are keen to market the euro as the strong alternative to the dollar at the moment."

"In theory, a slightly better outlook for world trade should be a euro-positive. Yet the euro has not been badly hit recently, and in fact the greater repricing of the Fed curve overnight (four expected cuts this year reduced to three) is proving a mild EUR/USD negative."

"Expect more consolidation in a 1.09-1.11 range for EUR/USD near term. Should it meet good demand near 1.0900 today on a firm US CPI, price action will be telling us that the investors are still minded to hedge/reduce dollar exposure."