FXStreet (Córdoba) - Camilla Sutton, analyst at Scotiabank noted that even though ECB meeting was pretty neutral for the EUR/USD, policy expectations in the US should support a lower euro.
“EUR is soft, closing Friday having retraced all of last week’s gains and trading back below 1.36 and essentially at the average level of the last year”.
“There were few takeaways from yesterday’s ECB meeting where policy was left on hold and President Draghi highlighted that rates are expected to remain at current levels for an extended period—suggesting that if there is need for further easing it will be coming from unconventional measures. President Draghi did suggest that they are watching EUR with great attention but that it is not a policy target”.
“The other shift was a change in meeting schedules, now to be held every six weeks and the
publication of meeting minutes”.
“We see the meeting as proving relatively neutral in terms of new information but juxtaposed against policy expectations in the U.S. should support a lower EUR. We hold a year‐end forecast of 1.30”.