Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

ECB tone EUR negative, but no sustained impact

The ECB's dovish tone would be expected to be negative for the Euro, but should not have a sustained impact. The current level of EUR/USD is consistent with data and fundamentals.  

Market positions in G10 FX are relatively light, suggesting data and fundamentals will become more important in driving markets, particularly after a resolution in Greece and as the Fed startstightening.

"Beyond the very short term, the EUR/USD is expected to remain bearish and also to reach parity by the end of the year, but this assumes the Fed hikes in September as US data improve and that the market will start expecting the ECB to continue QE after September 2016. Global spillovers from China could also be negative for the Euro", says Bank of America.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.