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16 Jul 2015
ECB could add to the EUR decline – TDS
FXStreet (Edinburgh) - In the opinion of strategists at TD Securities, today’s ECB meeting and subsequent press conference by Draghi could put the EUR under further downside pressure.
Key Quotes
“EUR/USD has drifted lower, led by further declines in EUR/GBP, which touched its lowest level in nearly eight years at 0.6969”.
“The GBP has drawn considerable support this week amid strong hints from BoE Governor Carney that rate hikes are starting to come into view”.
“We expect EURUSD and EURGBP to remain under pressure following the ECB meeting”.
“The ECB will leave all rates on hold but the more interesting aspect will come from the prepared remarks and Q&A”.
“Since this is the first meeting since the Greek deal (which has passed the Greek parliament and even the Finnish legislative house), we think Draghi will lean on the cautious side (even though we expect him to acknowledge a broadening in economic growth) and may emphasize that the central bank will lean against any unwarranted tightening in financial markets”.
Key Quotes
“EUR/USD has drifted lower, led by further declines in EUR/GBP, which touched its lowest level in nearly eight years at 0.6969”.
“The GBP has drawn considerable support this week amid strong hints from BoE Governor Carney that rate hikes are starting to come into view”.
“We expect EURUSD and EURGBP to remain under pressure following the ECB meeting”.
“The ECB will leave all rates on hold but the more interesting aspect will come from the prepared remarks and Q&A”.
“Since this is the first meeting since the Greek deal (which has passed the Greek parliament and even the Finnish legislative house), we think Draghi will lean on the cautious side (even though we expect him to acknowledge a broadening in economic growth) and may emphasize that the central bank will lean against any unwarranted tightening in financial markets”.