FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, sees the downside prevailing around the EUR.
"Good morning from a grey Frankfurt."
"Soft German Factory orders and industrial production data over the last two days, while European inflation remains anchored close to zero and inflation expectations are dangerously dragged lower (Graph 1), make for a depressed backdrop to the ECB meeting, which is universally expected to see no policy moves but no doubt, a fair amount of focus on the 13:30 BST press conference. ECB President Mario Draghi is likely to recognise the current challenges from geo-politics, banking reform, and weak growth and if he doesn't make further dovish noises, we'll all be surprised."
"The problem as ever is that he is almost out of ammunition but the belly of the European rates curve may get some support and as rate expectations are kept down, the Euro is now able to respond. EUR/USD bounces remain modest and the price looks on track for a move to 1.32. And as ever, when we find that shorting EUR/USD brings back painful memories, we like buying USD/SEK instead."