ECB and Fed on the right track to waken the EUR/USD - UBS

By FXstreet.com | July 04, 2014 AAA

FXStreet (Córdoba) - The UBS analyst team commented that both the Federal Reserve and the European Central Bank policies are contributing to weaken the EUR/USD further in the upcoming months, although the path might be slower than some people expect.



Key Quotes



“The ECB communication certainly cemented the cap on EUR/USD, but was not strong enough to trigger a strong depreciation of the euro. For this, more positive data from the US and a less dovish Fed would be needed”.



“We think both, the Fed and the ECB, are on the right track for EUR/USD to weaken further. However, the path might be slower than some people hope”.



“If the ECB would decide for quantitative easing, that would certainly accelerate the fall in EUR/USD. But so far, Draghi gave no commitment”.



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