06:15 AM EST, 02/11/2026 (MT Newswires) -- The inputs from the eurozone into the foreign exchange market remain very scarce, said ING.

It's a quiet period data-wise, and European Central Bank President Christine Lagarde didn't really give enough reasons to believe euro (EUR) strength is concerning just yet, stated ING.

Should EUR/USD move back past 1.20 -- perhaps on soft United States data -- the bank wouldn't be surprised to hear some members again pushing the idea of a currency-driven rate cut. However, ING's assessment remains that 1.25 would be the level driving a material downward revision in inflation projections and potentially a rate cut, and the impact of scattered comments on EUR strength wouldn't do much to curb USD-driven EUR/USD upside.

On Wednesday, the bank thinks U.S. payrolls can actually send EUR/USD in the other direction, and favor a return to a 1.180 anchor in the near term.

EUR/GBP dipped on Tuesday as markets partly priced out some risk of Prime Minister Keir Starmer facing a leadership challenge after several endorsements from Labour Party members, wrote the bank in a note. However, that sterling (GBP) recovery proved to be very short-lived, with plenty of interest in buying the dips in EUR/GBP, which ING sees as a mirror of both political concerns and dovish risks to Bank of England expectations.

Polymarket continues to show a 70% probability of Starmer resigning by June 30, and concerns about a less centrist Labour successor carry quite a bit of risk for GBP, given the potential fiscal implications, pointed out the bank. ING's view remains broadly bullish on EUR/GBP on the back of this and of its call for two Bank of England cuts by June: 0.88 remains a very realistic short-term target.

Despite the lack of a local story in the Central and Eastern European (CEE) area, Poland's zloty (PLN) and Hungary's HUF rates markets are testing new local lows and the Czech Republic's CZK market has also returned to pricing in rate cuts after overreacting to higher inflation last week, the bank added.

ING believes that inflation numbers in the coming days will support this narrative and investors may see further market pressure pushing rates down. This overall puts pressure on CEE currencies, which corrected some previous gains across the region on Tuesday.

This is still more of a fine-tuning exercise and ING doesn't expect a break from the current ranges for EUR/PLN and EUR/CZK in the coming days. This effectively offsets the positive factors of a weak US dollar and narrower interest rate differentials.