EUR/USD is looking for a new direction after rising and stabilizing. What’s next?
Here is their view, courtesy of eFXdata:
MUFG Research discusses the EUR outlook and sees a room for further gradual rebound this week.
“The euro has staged a modest rebound against the US dollar over the past week after hitting an intra-day low of 1.1510 on the 29th May. The euro has derived support from building expectations that the ECB could announce an end to their QE program at this week’s policy meeting. The ECB’s QE program is currently scheduled to end in September. A small taper is expected to be announced soon which would further slow the pace of monthly purchases before bringing the QE program to an end in December,” MUFG notes.
“At the current juncture, the ECB is unlikely to be overly concerned by the negative impact on the euro-zone growth outlook, but will be closely watching ongoing developments on the trade front. In these circumstances, we see scope for the euro to continue rebounding gradually in the week ahead,” MUFG argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
Share
