EUR/USD managed to recover from the lows despite the poor TLTRO and the diverging paths of monetary policies. The team at Goldman Sachs explains why there is a large downside to the pair with sovereign QE looming: Here is their view, courtesy of eFXnews: “We study tic-by-tic moves in the Euro during last week’s ECB press conference, which saw EUR/$ spike higher. We think the price action underscores our take that the single currency is not pricing sovereign QE, validating our view of significant downside in EUR/$ in the months ahead. We think this price action is revealing in a couple ways: (i) the initial move lower in EUR/$ on “expectation” becoming “intended” underscores once again – as did the November press conference – that the ECB’s goal of expanding the balance sheet by €1trn is not yet fully priced, leaving aside the question of whether (and when) sovereign QE is coming; and (ii) the market is still distrustful that the ECB may do sovereign QE in short order given the divisions on the Governing Council. We see both things as meaningful, given our conviction that sovereign QE is coming – indeed, as we note above, President Draghi’s use of the term QE was the most ever during last week’s press conference. Overall, we see this price action as reinforcing our view that sovereign QE means substantial downside for EUR/$ and that the market remains behind the curve in anticipating this event.” Robin Brooks, Fiona Lake and Michael Cahill – Goldman Sachs 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. Yohay Elam Yohay Elam 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 a 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. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next AUD: Flows, Valuation, Risks, Forecasts – Danske Yohay Elam 8 years EUR/USD managed to recover from the lows despite the poor TLTRO and the diverging paths of monetary policies. The team at Goldman Sachs explains why there is a large downside to the pair with sovereign QE looming: Here is their view, courtesy of eFXnews: "We study tic-by-tic moves in the Euro during last week's ECB press conference, which saw EUR/$ spike higher. We think the price action underscores our take that the single currency is not pricing sovereign QE, validating our view of significant downside in EUR/$ in the months ahead. We think this price action is revealing in 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.