EUR/USD sold off on Wednesday morning and that looked to be a function of the German Ifo release, ING's FX analyst Chris Turner notes.

EUR/USD will be dragged around by US event

"Here, some doubts seem to be emerging as to how quickly fiscal stimulus can be employed and whether it is indeed just creative accounting. Our macro team are looking for a pick-up in eurozone activity in 2026, but clearly some patience is required. And if EUR/USD is to move higher later this year as we forecast, this will largely have to be on the back of a further rise in unemployment and Fed rate cuts."

"In the absence of eurozone data or ECB speakers today, EUR/USD will be dragged around by US events today. A move under 1.1725 in EUR/USD could damage the short-term picture and see the correction extend towards the 1.1660 area."