EUR/USD is testing the 1.160 support, but as discussed above, we aren’t very confident the dollar can rally much further from here without data inputs, ING's FX analyst Francesco Pesole notes.

Markets are waiting Lagarde to speak

"Meanwhile, the Trump-Putin meeting in Budapest has been called off for now, just as European countries are reportedly working with Ukraine on a 12-point peace plan. These developments vindicate markets' extremely cautious treatment of Ukraine truce hopes. We remain of the view that any meaningful market reaction will require tangible progress – rather than mere speculation."

"Today, ECB President Lagarde speaks at an event, but may not touch on monetary policy. Anyway, there's little chance of deviation from the well-established neutral communication."