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EUR/USD range for the week ahead after it “has broken lower against the US dollar”



EUR/USD range for the week ahead after it “has broken lower against the US dollar”




















MUFG on the euro – see it 1.0950 / 1.1250 for this coming week

Comments:

  • euro has broken lower against the US dollar
  • key factor behind this has been mounting concerns over global growth
  • The Fed’s recent emphasis on the global economy suggests that building risk factors could weigh on their rate guidance, which could weaken the dollar
  • But in this risk-off environment it seems more likely that the dollar will be supported
  • Jackson Hole will be a key event to watch for signs that Fed Chair Powell may change his stance
  • Comments by ECB Governing Council member Olli Rehn which suggest that the ECB could deliver a package of stimulus measures which could overshoot the market’s expectations, will continue to weigh on the euro
  • Rates markets are now pricing in a 75% chance of a 20bps cut in the deposit rate by September

ForexLive


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