EUR/USD: $1.2000 problematic for ECB - BBH

Analysts at Brown Brothers Harriman explained that European officials seem more concerned about the euro when it trades above $1.20.  

Key Quotes:

"The issue is whether Draghi can succeed in convincing the market that of a dovish tapering."

"He will likely emphasize the sequence."

"A rate hike will not be delivered until the asset purchases are complete."

"The new expansion of the ECB's balance sheet may run six to nine months (though there is some talk of a full year, which seems too large a commitment at this juncture)."

"Meanwhile, with shifts in the composition of the Federal Reserve expected in the coming months, the market is reluctant to take the Fed's dot plots, which point to three hikes as being appropriate next year, too seriously."