FXStreet (Córdoba) - The near-term bias in the EUR/USD is now bearish according to analysts from the Bank of Tokyo Mitsubishi, after today’s statement from the European Central Bank. They expected the pair to trade 1.1400 and 1.0950 next week.
Key Quotes:
“The euro is likely to remain under downward pressure against US dollar in the near-term following the more dovish than expected ECB policy meeting.”
“ECB easing expectations are likely to continue to build ahead of their next meeting on the 3rd December. The release of the latest euro-zone PMI surveys for October will also be in focus in the week ahead to assess if the euro-zone economy is losing some growth momentum in the near-term.”
“The US dollar also faces some downside risks in the week ahead which may help to dampen further EUR/USD weakness. The upcoming FOMC meeting will be closely watched to see if the Fed still leaves open the probability of a rate hike in December. If the statement is more dovish than in September the market is likely to conclude that the Fed is unlikely to raise rates until next year which could weigh modestly on the US dollar.”
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