The TD Securities (TDS) Analysts offer their outlook on the EUR/USD pair, given the record low long-term inflation expectations, as highlighted by the ECB’s Survey of Professional Forecasters last week.
Key Quotes:
“The ECB’s Survey of Professional Forecasters revealed that long-term inflation expectations have fallen to all-time lows.
This accounts for much of Thursday’s dovish ECB turn and is likely to keep EURUSD under pressure for the foreseeable future.
For now, we think spot will struggle to sustain gains above 1.1190 as the centre of gravity is starting to look lower there.”
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