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
  • 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.

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