BTMU on the big decisions coming this week
For the second consecutive week, BTMU FX Strategy Research is neutral on EUR/USD around current levels, while allowing a wide range of 1.14-1.22 in the near-term to reflect heightened uncertainty ahead of ECB policy announcements, and Fed Chair's pick.
"The main scheduled event this week will be the ECB's much anticipated policy meeting. The ECB will unveil their plans to taper QE from next year. Market expectations ahead of the meeting are gravitating towards the ECB slowing the monthly pace of QE purchases to EUR20-30 billion and extending purchases until the end of September of next year. The ECB is also expected to emphasize that rates will remain low until well past the end of QE.
We are still awaiting the upcoming announcement from President Tump over who he will nominate to be the next Fed Chair (no exact date has been confirmed). The announcement could prove pivotal for US dollar performance heading into year end," BTMU argues.
For bank trades, check out eFX Plus.
