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Analysts at Citi Group offer their short-term outlook on the EUR/USD pair, in the face of likely easing by the European Central Bank (ECB) this Thursday.

Key Quotes:

“The near term, euro area activity remains very weak, inflation low.

ECB may prepare another round of easing, probably at the 12 September, including more QE.

More QE means, a negative net supply dynamic in the EA bond market.

We lower our EUR/USD forecast 0-3m target from 1.12 to 1.08 level.”