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EUR: The ECB Poses ‘2-Way’ Risks For EUR/USD On Thursday

The European Central Bank’s meeting is getting closer and the tension is felt in euro/dollar. Here is the view from Barclays:

Here is their view, courtesy of eFXnews:

Barclays Capital FX Strategy Research argues that the ECB meeting on Thursday poses ‘two-way’ risks for EUR/USD.

We expect that the ECB will leave its policy settings unchanged at its September meeting (Thursday), but the meeting presents several risks for the currency:  

1-  The ECB could remove the asymmetry around the language of its Asset Purchase Program, with upside risks to the EUR.

2-  Growth forecasts likely will be revised higher, as the recent currency strength arguably already reflects the long streak of positive surprises from the euro area economy. While the revision seems widely expected, its size introduces symmetric risks for the EUR.

3-  Inflation likely will be revised down, given the rapid EUR appreciation since the last meeting, with downside risks for the currency,” Barclays argues.

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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.