Analyst at Danske Bank Aila Mihr highlighted the relevance of the Sintra event for the pair ahead in the week.
Key Quotes
“EUR/USD is consolidating around the 1.16 level following last week’s significant drop on the ECB’s dovish rate guidance”.
“Focus this week will be on whether the ECB’s Sintra gathering – where notably Draghi speaks tonight – could shift FX market focus towards the wage price pressure that the ECB sees building, which was the reason the ECB actually opted to end QE”.
“We believe that could help put a floor on the euro short term but continue to see the 1.15 area as roughly the bottom. Also, keep an eye on the trade dispute. However, with its current focusing on US versus China, we do not see it as a major EUR/USD driver. Note, that we remain long the cross via options (6M left to expiry)”.
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