19 Jan 2016
EUR/USD sitting below 1.1000 ahead of ECB this week - Scotiabank
FXStreet (Guatemala) - Analysts at Scotiabank explained that spot remains relatively contained in a tight range ahead of the ECB policy meeting Thursday.
Key Quotes:
"The EUR looks modestly better offered, reflecting the bounce in equities and the EUR’s status as a funding vehicle for leveraged/carry trades.
The market has looked stalled below 1.10 since December but risks may be tilted a little more to the downside near-term if equities can steady and if ECB President Draghi maintains a dovish bias at Thursday’s policy meeting.
Data releases have had little impact on the EUR; German final CPI was unchanged at 0.2% y/y while the January ZEW survey dropped to 10.2 (from 16.1 – but was still above market expectations of 8.0)."
Key Quotes:
"The EUR looks modestly better offered, reflecting the bounce in equities and the EUR’s status as a funding vehicle for leveraged/carry trades.
The market has looked stalled below 1.10 since December but risks may be tilted a little more to the downside near-term if equities can steady and if ECB President Draghi maintains a dovish bias at Thursday’s policy meeting.
Data releases have had little impact on the EUR; German final CPI was unchanged at 0.2% y/y while the January ZEW survey dropped to 10.2 (from 16.1 – but was still above market expectations of 8.0)."