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Forex pairs in this Article » EUR/USD, USD/JPY (Barcelona) - The house view at the Bank of Tokyo Mitsubishi UFJ is that the financial markets will await the next step in the euro-zone crisis with Spain holding out on making an official request for support which would be a key step toward OMT by the ECB.

They note that EURUSD has been in a big 2 figure range between 1.28-30 since September 24th and they expect this relative stability to extend into next week. In his meeting today, Draghi gave no clear signal on the next policy step which he may undertake.

They finish "We still expect an additional rate cut, but December remains the earliest month for that. Of course, like with USDJPY above, tomorrow's employment report from the US will be important. However, QE3 has only just begun and hence although a strong report is favourable for the dollar, one strong report is unlikely to alter QE3 expectations dramatically."
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