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Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - Camilla Sutton, Chief FX Strategist at Scotiabank notes that EUR is stronger, up 0.1% from yesterday’s close; but still trading within Friday’s range.

Key Quotes

“The Eurozone flash CPI estimate came in as expected at 0.8%y/y on headline and slightly weaker on core, 0.7%y/y. Inflationary pressures in Europe continue to trend lower (November’s headline print was 0.9%y/y), which will pressure the ECB to maintain a notably dov‐ish tone this week.”

“The ECB meeting and press conference is the core risk to EUR this week. The combination of a strong EUR, disinflationary pressures and subdued credit dynamics are likely to keep the ECB dovish for a long time and eventually this should weigh on EUR.”

“We hold a year‐end 1.25 forecast. In other fundamental news, German employment came in stronger than expected, adding 15k jobs in December; while French consumer confidence ticked higher.”
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