FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman feels that there is a risk of a near-term bounce for the euro.
"While we expect the dollar to eventually continue to appreciate, there is a risk of a near-term bounce for the euro if the ECB disappoints (as we expect) those hoping for QE in next week’s meeting. In his Jackson Hole speech, Draghi implied that more action could be in the cards if deflation persisted, but that does not necessarily mean QE, and even if it does, it certainly doesn’t necessarily mean now."
"In fact, we think that an asset purchase program is more likely next year than this one. Still, the possibility of further action (and the risk of disappointment if it does not materialize) has temporarily stalled the dollar’s strengthening trajectory."