FXStreet (Guatemala) - Analysts at TD Securities explained that, by some measures, EUR/USD volatility has never been lower.
“Spot is barely changed so far this year. Traditional drivers of FX movement seem to have little effect on the markets at the moment”.
“Fundamentally, we feel that even relatively disappointing US growth so far this year contrasts with weak (or weakening) growth trends in the Eurozone while the Fed’s steady move away from QE contrasts with the ECB’s recent embrace of more expansive, non-traditional policy measures. This should be EURUSD-negative”.
“As a result, we remain bearish on the broader outlook for EURUSD but, absent a significant catalyst, low vol range-trading may persist for a little longer”.