06:28 AM EDT, 09/09/2024 (MT Newswires) -- EUR/USD failed to hold intra-day gains on Friday as investors again struggled to take a clear view on whether the United States Federal Reserve will cut by 25bps or 50bps, said ING.

This week, the focus will be Thursday's European Central Bank meeting. Here, a 25bps cut looks like a done deal, while the quarterly forecast update should be the main takeaway, wrote the bank in a note.

Any big downward revisions to back-year inflation forecasts could hit the euro, but such a change in forecast is far from guaranteed, stated ING.

The bank expects EUR/USD to not drift too far away from 1.110 over the next couple of days with the US election debate perhaps the first big driver this week.

Financial markets are still rather driven by the global story but ING believes inflation numbers in the region could set the direction for foreign exchange. For now, the bank remains rather bearish on the Central and Eastern European region.

EUR/HUF quickly reached ING's higher levels on Friday and although the bank thinks conditions don't point to further Forint (HUF) weakness, ING doesn't believe that market repricing is over yet. If inflation moves closer to the Hungarian central bank's forecast, it would signal further HUF weakness.

EUR/CZK is resisting upward pressure for now indicated by the rapid decline in rate differential. However, the bank continues to see a tactical move up towards 25.20 before returning to its earlier view of heading below 25.00.

ING continues to see EUR/PLN trading in the 4.270-280 range.