EUR/USD is back to trading close to the 1.120 mark, entirely driven by the swings in the dollar following the US-China deal and CPI numbers, ING's FX analyst Francesco Pesole notes.

EUR/USD to stabilize around 1.120 over the coming days

"Our one-month target for the pair is 1.12, on the view that markets will retain interest on short-USD positioning ahead of expected US data deterioration, but that the euro is not particularly well positioned to benefit from it as the ECB continues to cut, and markets may look with more interest at higher beta currencies on the back of better risk sentiment."

"In eurozone macro news, the ZEW expectations survey rebounded in May, showing increased hopes for US trade deals, although the current situation gauge failed to show any recovery."

"We expect some stabilisation around 1.120 in EUR/USD over the coming days."