Here's a downside call for EUR/USD on the ECB

Author: Eamonn Sheridan | Category: Central Banks

I posted a preview summary for the European Central Bank policy meeting here:

If you check it outy ou'll see a preponderance of calls for the upside risk for EUR.
An alternative view now, this snippet via TD:
Analysts there looking for:
  • 20bps rate cut 
  • tiering
  • 40bn EUR per month of QE
  • no rate hike projection until mid 2021 at the earliest
And:
  • We're more comfortable with the rates view than QE, as QE will likely be a contentious decision.
  •  Our dovish ECB call has us looking for downside risks to EURUSD. We think spot will be more sensitive to a large QE announcement than rate cuts as much of the expected Fed/ECB policy path differential already looks priced.

ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose