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Forex pairs in this Article » EUR/USD (New York) - According to Economists Brian Martin and Amber Rabinov at ANZ, “Leaving apart the dollar side of the equation for the moment, for the EUR/USD much therefore depends on the political evolution of banking union in the short-term and the stance that the ECB will adopt at its next council meeting.”

The market seems to be becoming immune to continuous reference to negative deposit rate talk but, nonetheless, it is appropriate for ECB officials to guide interest rate expectations as low as possible.

“In this environment, the EUR could continue to trade defensively. If the EUR/USD closes below the 1.3020-50 area, our technical analysts say that a test down to the 1.25-1.2700 range is possible. However, that will depend on how the political cookie crumbles and the stance from the ECB.” they add.
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