With investor sentiment under intense pressure again after Trump’s address overnight, the focus turns to Thursday’s crucial ECB meeting. Analysts at TD Securities look at the EUR/JPY pair, which is trading at 116.71, and establish the key levels to watch.
“We think it will be very difficult for EU policymakers to deliver the kind of coordinated and comprehensive action we saw from the UK this week.”
“We expect a somewhat counterintuitive move in EUR in response to this disappointment, however.”
“We are monitoring key support at 115.87. A break lower would target a move through 114.85 ahead of a potential test of 112.09 in the days ahead if sentiment deteriorates further.”