Analysts at MUFG Bank, point out that the euro could appreciate if the European Central Bank (ECB) does not deliver easing measures. Key Quotes: “The next key resistance level is provided by the intraday high from the 25th June 2019 at 1.1412. There is clearly a heightened risk that the EUR’s rebound will extend in the near-term driven by the liquidation of funding positions with more-risk-averse trading conditions likely to continue.” “The sharp strengthening of the EUR is an unhelpful development for the ECB which will further dampen their outlook for inflation if it proves persistent. It comes at a time when downside risks for growth in the euro-zone have increased significantly in response to the coronavirus-related disruption. The negative shock could tip the euro-zone economy into recession in the coming quarters with the Italian and German economies judged as most exposed. The Italian government has stated that it will double the amount of planned fiscal stimulus to EUR7.5 billion to combat economic disruption which already includes a nationwide school closure and a ban on public events. We expect other national government in the euro-zone to follow with looser fiscal policy, but pressure still remains on the ECB to act.” “The ECB is under pressure to deliver a package of easing measures in the week ahead both in response to significant downside risks to the euro-zone growth outlook from the virus and the sharp strengthening of the EUR. After the Fed’s aggressive response, there is a clear risk that the EUR will strengthen further if the ECB disappoints expectations next week. Pushing rates deeper into negative territory could prove more effective at dampening upward pressure on the EUR. However, the ECB may still struggle to reverse the strengthening EUR trend in the near-term.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NFP: Jobs report is old news – Wells Fargo FX Street 3 years Analysts at MUFG Bank, point out that the euro could appreciate if the European Central Bank (ECB) does not deliver easing measures. Key Quotes: “The next key resistance level is provided by the intraday high from the 25th June 2019 at 1.1412. There is clearly a heightened risk that the EUR’s rebound will extend in the near-term driven by the liquidation of funding positions with more-risk-averse trading conditions likely to continue.” “The sharp strengthening of the EUR is an unhelpful development for the ECB which will further dampen their outlook for inflation if it proves persistent. It comes at a… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.