Barclays: ECB meeting likely to accentuate EUR weakness - eFXnews

By FXstreet.com | Updated August 06, 2014 AAA

FXStreet (Łódź) - The eFXnews team note that Barclays doesn't project any changes to ECB's monetary policy at the meeting on Thursday.

Key quotes

"'ECB President Mario Draghi is likely to reaffirm the central bank’s commitment to using extraordinary policy measures to ease monetary conditions, including the prospect of ABS purchases, and address very low euro area inflation,' Barclays projects."

"We look for further information regarding the implementation of those measures in the press conference, particularly after data last week showed inflation had declined to 0.4% y/y in July and is likely to reach a cyclical low of 0.3% y/y in August and September."

"'The DAX underperformance, wider periphery spreads, and lower 5y breakeven are likely to bring questions to Draghi’s press conference this week,' Barclays adds."

"On the technical front, Barclays technical strategy team is looking to see sustained downward momentum on EUR/USD, having broken pivotal support in the 1.3450 area and they target the 1.3220/50 area or else the 1.3015 area below."

"From a more fundamental perspective, Barclays continues to forecast EUR/USD to reach 1.28 by year-end and sees the EUR as our favoured funding currency against selective EM carry, even in a less-than-ideal environment for risk sentiment."

'This content has been provided under specific arrangement with eFXnews.'

You May Also Like

Related Forex Analysis
  1. Forex News

    Euro Flounders at Yearly Lows as Likelihood of ECB QE Increases

  2. Forex News

    Weekly Trading Forecast: How Far can the Dollar Go in 2014?

  3. Forex News

    US session recap: USD index and stocks rally for record highs

  4. Forex News

    US Dollar Targets Fresh Highs versus Euro, but What Could Change?

  5. Forex News

    A calm and holy night or a snowstorm of volatility? – ING

Trading Center