Forex Flash: EUR/USD consolidation should be temporary - UBS

FXstreet.com (Córdoba) - Markets approach the ECB meeting with confidence, Spanish and Italian bond yields are close to recent lows as markets are preparing for this Thursday's ECB meeting, according to the UBS analyst team.

"The EURUSD rate consolidated from recent highs due to the release of the December Fed meeting minutes, at which some members have challenged the planned time frame of the current quant easing policy", they explain. "We think the EURUSD consolidation should be temporary and expect the ECB to re-assure that it will do anything to keep the euro stable. So a near term rebound of EURUSD is quite likely".