The European Central Bank left its policy unchanged and President Mario Draghi repeated his stance that risks are moving to the downside. What’s next?
Here is their view, courtesy of eFXdata:
Danske Research discusses EUR/USD outlook in light of today’s ECB policy decision and maintains a neutral bias in the near-term.
“The ECB was on the dovish side today, with little new information in terms of policy signals, but it opened the door for further policy easing, in particular, the tiering system. The pros and cons of the tiering system are still to be assessed, although Mario Draghi was very careful not to use the word ‘tiering’ as such,” Danske notes.
“In our view, the ECB did not provide arguments for EUR/USD to fall much further from here and we stick to our call for the cross to trade around 1.13 in 3M,” Danske adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
