EUR/USD to see through ECB meeting – Danske Bank

Analysts at Danske Bank suggest that today when the ECB President Mario Draghi takes the stand, they do not expect it to be a big event for EUR/USD.

Key Quotes

“Over the past few years, the EUR/USD has ended the press conference within +/-0.3%, compared with the start.”

“As we see little possibility of the ECB announcing any new policy signals, we look for this pattern to continue.”

“In the big picture, the ECB’s monetary policy is slowly beginning to become more EUR positive. See, for example, the development in EUR liquidity this year, which has stopped increasing.”

“ECB monetary policy could turn further EUR-positive in 2019, once the ECB has ended quantitative easing and a rate hike looms. We forecast EUR/USD at 1.13 in 3M, 1.18 in 6M and 1.25 in 12M.”