Two things to expect from the ECB - BAML

Bank of America Merrill Lynch on the euro

Bank of America Merrill Lynch Research discusses EUR/USD outlook and notes that all eyes are now on the ECB meeting next week.

"Our economists expect President Draghi to emphasize two messages on Thursday: first, sequencing is an ironclad element of forward guidance and is sacrosanct. Second, changes to communication will be gradual. They still think the asymmetric element to QE will be dropped on Thursday, whilst more consequential aspects of forward guidance will change only in March.

The speed of the rally towards 1.23 has been met by a wave of ECB Council Members this week and we believe EUR/USD is vulnerable to dovish remarks from President Draghi who may also address recent EUR gains in the Q&A session," BofAML argues.

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