EUR/USD to remain in tight range short term - BTMU

By FXstreet.com | August 07, 2014 AAA

FXStreet (Guatemala) - FX Strategists at the Bank of Tokyo Mitsubishi UFJ noted that the ECB President Draghi’s monthly monetary policy press conference following the ECB meeting and explained there were no major changes to the statement or in the Q&A session that followed.

Key Quotes:

"President Draghi did indicate that ABS QE ‘investigations’ were ongoing but hinted that there would be an end to this that would be followed by a policy announcement."

"But QE through the ABS market is likely to be small and there remains no sense at this stage as to when it might be implemented. So we see no impact on the euro for now."

"The week ahead suggests EUR/USD may remain in a relatively narrow range. Data from the euro-zone is light but next Thursday we do get GDP data from the key core countries and for the eurozone as a whole."

"We, like the market now, expect GDP data to indicate only very subdued growth. Retail sales from the US will be the key data for the dollar and the sharp fall in gasoline prices in July (-9.1%) and the record high for equities in July bodes well for ex-gasoline retail sales. Hence, we see more of the recent mix of macro-economic news that will continue to weigh on EUR/USD."

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