EUR: Short Squeeze May Continue Absence Any Significant Dovish Surprises From ECB – Credit Agricole

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The ECB holds a policy meeting later this week. What is the outlook for EUR?

Here is their view, courtesy of eFXdata:
Credit Agricole CIB Research discusses its expectations for this week’s ECB policy meeting.

“The main focus will be on the outcome of the April ECB policy meeting. We expect Lagarde to likely reiterate the ECB’s cautious economic outlook and signal that the Governing Council is still monitoring the moves in the EUR. That said, the updated policy language may suggest that scrutiny of FX markets in particular may have become somewhat less intense than before,” CACIB notes.

The EUR could continue to remain supported albeit mainly vs low-yielders like the JPY and CHF in the absence of any significant dovish surprises from the ECB,” CACIB adds.

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