FXStreet (Edinburgh) – Eric Theoret, Currency Strategist at Scotiabank, has reiterated its short-term neutral view on the pair.
Key Quotes
“The deterioration in euro area inflation will add to pressure on the ECB and expectations of further accommodation as market participants consider the most recent press conference introductory statement and its emphasis on ‘flexibility in terms of adjusting the size, composition and duration of the [asset purchase] programme’.
“We maintain a fundamentally bearish bias to EUR and look to decline throughout our forecast profile”.
“Both trend and momentum signals are remarkably neutral. The convergence of longer term (50, 100, 200) moving averages is notable, and we remain focused on the potential for a material break back toward the September lows near 1.1100 with risk of further, medium term weakness toward the July lows around 1.0800”.
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