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Forex pairs in this Article » EUR/USD
FXStreet (Guatemala) - Shaun Osbourne, Chief FX Strategist at TD Securities noted that the look for the EUR/USD to retain a weaker bias ahead of the ECB.

Key Quotes

"A Bloomberg report yesterday indicated that ECB President Draghi “would only consider” ending the sterilization of bond purchases if he had the open support of the Bundesbank. The story is a little curious as the WSJ reported last week that the Bundesbank favoured an end to sterilization measures—so the key players all seem to be in favour of ending sterilization which would effectively leave more liquidity in the system."

"The reports seem to have driven a dip in short-term funding rates as markets start to anticipate additional liquidity sloshing around the system. It is debatable whether changes here would have that much impact on credit though and market speculation has rather focused on a cut in the refi rate as the ECB’s most likely response to the weaker run of data recently. We look for EURSUD to retain a weaker bias ahead of the ECB (EUR/USD capped below 1.3550/75) and target 1.3400."
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