FXStreet (Barcelona) – Brian Daingerfield, FX Trading Strategist at RBS previews the Eurozone composite CPI release and ECB’s rate decision this week, and further remains bearish on the EUR/USD.
Key Quotes
“Preliminary May CPI data in Spain and Germany both revealed modest pickups in headline and core CPI rates, and the Euro-area composite CPI estimate may show a similar result.”
“Even so, we think the ECB is likely to keep its policy rates and key conclusions unchanged at the June policy meeting this week, with a particular emphasis on the importance of completing its QE program as scheduled.”
“We think the Euro-area “reflation” narrative should be faded and prefer EUR/USD downside.”
“Our European rates independent research colleagues feel that European FI can rally as quickly as it sold off, which if materialized would likely weaken the EUR.”
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