Fed: Downside bias to the euro - BBH

Research Team at BBH, notes that for four sessions now, the euro has put in lows between $1.1072 and $1.1080 and thus, the euro is holding the breakout that they peg in the $1.1040-$1.1060 area.

Key Quotes

“Although the downside has been limited, the upside is marked by declining highs for the fourth session. However, we expect the narrow range so far today (~a third of a cent) to be expanded. Our bias is for a Fed that is a bit more hawkish than the market expects, which gives us a downside bias to the euro. That said, initial upticks in the North American session can retest the $1.1125 area.”