Still Friday trade to come for the euro, but a projection for the currency via MUFG:
MUFG have a neutral bias for next week, comments in brief:
- expect trade in 1.09 / 1.12 rang
- euro largely unmoved by the recent ECB and Fed policy meetings
- over time it should remain under downward pressure against the USD
- Fed signalled that the current rate cut cycle could be close to an end
- Loose monetary policy will remain in place for longer than expected in the euro-zone
- recent easing of Brexit risks and building optimism over a mini US-China trade deal are helping to ease downside risks for the euro in the near-term
- recent spike in USD funding rates is also creating additional uncertainty - its prompting speculation the Fed will resume balance sheet expansion, could put a dampener on upside potential for the US dollar
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Daily candles euro / usd
