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.
“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”.