Credit Suisse advised clients to buy dips ahead of tomorrow’s ECB meeting in a note today.
They say a near-term base has been established and that any dip in the euro following the ECB is likely to be temporary.
There is debate about whether the euro will rise or fall on a rate cut. The normal playbook is for a currency to fall on lower rates but in this case it could be viewed as stimulative for growth and help the euro. On the other hand, it could point to further measures in the future.
I suspect the knee-jerk will be lower on a cut and that will be the buying opportunity.