FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that the euro has remained stuck in the $1.08-$1.10 trading range since the ECB cut rates and extends its asset purchase program in early December.
Key Quotes:
“There have been a few false breaks, and the euro closed the week a few ticks below the range. The technical indicators we use are not generating strong signals. With Draghi kicking the door open to March action, there may be some interest in trying to push the euro lower.”
“However, the risk is for a dovish FOMC statement that recognizes the increased market volatility and the decline in market-based measures of inflation expectations (break-evens) to new lows. This means that a potential push lower in the euro at the start of next week could be reversed after the FOMC. The low from earlier this month is near $1.0710-15.”
(Market News Provided by FXstreet)