EUR/USD: In A Narrow Range But Next Week’s FOMC Could Be A Game-Changer – MUFG

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EUR/USD leaned lower but never fully fell out of range. What’s next? The Fed decision could make a difference.

Here is their view, courtesy of eFXdata:

MUFG Research discusses EUR/USD outlook and adopts a neutral bias but flags next week’s FOMC as a possible trigger for reversing USD strength through next year.

“The euro is continuing to stabilize at lower levels against the US dollar. A narrow trading range between the 1.1200 and 1.1500-levels remains in place for now. The ECB’s latest policy meeting proved largely uneventful for the euro. The ECB was more cautious on the growth outlook but it was largely as expected as market participants have already pushed back the timing of the first expected ECB rate hike into 2020,” MUFG notes.

“The main focus in the week ahead for the US dollar will be the upcoming FOMC meeting. If the Fed pares back plans for further rate hikes in 2019 and open the door to rate pause as early as in March, it could encourage a weaker US dollar,” MUFG adds.

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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 the 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.

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