European Central Bank jawboning if EUR/USD heads above 1.2200
That's the expectation from Westpac.
- EUR/USD looks set to breach its recent range (1.17-1.22) resistance
- ECB officials are likely to voice concern in order to dampen moves above 1.22
Further from WPAC:
- EU quarterly economic forecasts ... lifts in growth for both 2021 and 2022 from their Winter profile (4.2% from 3.7% and 4.4% from 3.7% respectively).
- The uplift is due to the now successful regional covid vaccine rollout and expectations for easing of the majority of COVID-19restrictions during H2 2021.
- ECB officials have also stressed the flexibility of PEPP purchases, the pace of which was increased into the current quarter and now looks set to slow into mid-year as full ratification of the Recovery Fund appears imminent, given the EC summits
Meanwhile, EUR/USD is not doing much at all during the timezone here, awaiting the US retails sales data Friday it would seem.