Home EUR/USD: ECB Buying Time; USD Awaiting A Trigger To Flip ‘Weak Switch’ Back On – ING
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EUR/USD: ECB Buying Time; USD Awaiting A Trigger To Flip ‘Weak Switch’ Back On – ING

EUR/USD initially advanced on the ECB but retreated afterward. What is going on? And where is the greenback going?

Here is their view, courtesy of eFXdata:

ING Research discusses the reaction to  today’s ECB meeting and thinks that it sets new milestone in terms of buying time.

“It is very hard to believe but according to ECB President Mario Draghi, the ECB did not discuss the monetary policy outlook at all. The most cautious version of buying time, avoiding new speculation  and really saying nothing.

In our view, the  next meeting in June,  which will be held in Riga,  should bring some guidance for the future path of QE.  Given today’s caution and dovishness, anything but another extension beyond September would be a big surprise,” ING argues.

Meanwhile,  ING argues that USD recent gains are unlikely to be sustainable.

“Bigger US budget and current account deficits means that the textbook case for a weaker dollar remains in place. We just need something to flip this weak USD switch back on.,” ING adds.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.