EUR/USD neutral, between the Fed and the ECB – BTMU

FXStreet (Córdoba) – According to the Global Markets Research Team at The Bank of Tokyo-Mitsubishi UFJ the bias in EUR/USD remains neutral, with price likely to remain between 1.1050 and 1.1450.

Key quotes:

“The euro continues to remain range bound against the US dollar in the near-term and is fluctuating roughly in line with daily gyrations in global risk sentiment. The market attempted and failed to push EUR/USD above the top of its recent trading range following last week’s FOMC meeting.”

“The Fed signalled that there is an increased likelihood that it could delay raising rates until next year which may help to dampen downside pressure on EUR/USD heading into year end.”

“The ECB has already signalled that it has moved closer to easing policy further although there is no immediate need yet to enhance their QE programme. President Draghi has stated that the ECB wants more time to assess the impact of recent developments which have increased downside risks to the outlook for inflation. Building expectations for further ECB easing will remain a weight on the euro.”

According to the Global Markets Research Team at The Bank of Tokyo-Mitsubishi UFJ the bias in EUR/USD remains neutral, with price likely to remain between 1.1050 and 1.1450.


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By FXOpen