The message that ECB president Mario Draghi sent was very calm and puts faith in temporary factors. Energy and food prices, austerity and also the bank stress tests are all to blame for low inflation, which he doesn’t see as materializing to outfight deflation. However, there is one factor that wasn’t mentioned in the press...

The post Analysis: ECB expects the situation to sort itself out, appeared first on Forex Crunch.

The post All eyes on the ECB meeting December 2015 appeared first on Forex Crunch.

EUR/USD continues to see the euro weakening against the dollar, as the buck stomps down all before it. The start of tapering by the ECB has not helped the euro, with real interest rates still stubbornly negative. The pair is currently trading at 1.1600. The worry for Europe’s policymakers must be that market watchers  and...

The post Euro and Inflation Outlook: Recovery Strong, Prices And Yields Alarming appeared first on Forex Crunch.

What is the forecast for EUR/USD in the near-term? Here is their view, courtesy of eFXdata: Societe Generale Research  sees a limited scope for EUR/USD downside from current levels in the near-term. “The question for the dollar is still more one of what happens elsewhere. Bund yields are at -0.1% this morning, their highest level...

The post EUR/USD: Unlikely To Go Down Much Even If US Yields Rise Slightly More – SocGen appeared first on Forex Crunch.

What is the outlook for EUR/USD at the end of Q2? Here is their view, courtesy of eFXdata: Nordea Research discusses EUR/USD outlook and  targets the pair at 1.15 end of Q2. “Our view on USD interest rates could also lead to a reversal of the EUR/USD towards the second half of this year. We...

The post EUR/USD: A Reversal Is Coming Targeting 1.15-1.16 By Mid-Year – Nordea appeared first on Forex Crunch.

What is the forecast for EUR/USD over the medium-term? Here is their view, courtesy of eFXdata: Danske Research likes staying short EUR/USD over the medium-term. “Dollar strengthened against EM and EUR yesterday. In our view, these moves are a continuation of the FX theme(s) we have been writing about recently as  we see support being...

The post G10: Short 2020 Momentum And Long FX Value; Staying Short EUR/USD & Broad USD Longs – Danske appeared first on Forex Crunch.

What is the outlook for EUR/CHF? Bank of America Global Research doesn’t like outright long in EUR/CHF to express bearish CHF bias. “Despite sold performance since the start of the year, higher EUR/CHF does not feature high on our list for preferred CHF shorts.  We do not see a clear distinguishing factor between the Eurozone...

The post EUR/CHF: Not On Our List For Preferred CHF Shorts; Gains Likely Limited Below 1.12 – BofA appeared first on Forex Crunch.

What is the outlook for the USD in the near-term? Here is their view, courtesy of eFXdata: MUFG research discusses its expectations for next week’s FOMC policy meeting and  sees a scope for further USD upside in the near-term. “The BoC on Wednesday, the ECB yesterday and next week the Fed, the BoE and the...

The post USD: Upside Risk Into Next Week’s FOMC – MUFG appeared first on Forex Crunch.

What is the outlook for EUR/USD, given the ECB policy meeting later on Thursday? Here is their view, courtesy of eFXdata: Bank of America Global Research discusses its expectations for tomorrow’s ECB policy meeting. “This is an important  European Central Bank (ECB)  meeting in our view and we are concerned that investors are  not focusing...

The post EUR: Weaker If The ECB Gets It Right But Disappointment Is A Risk – BofA appeared first on Forex Crunch.

What is the outlook for EUR/USD in the near-term? Here is their view, courtesy of eFXdata: Societe Generale Research flags a scope for further EUR/USD downside on the back of positioning adjustment in the near-term. “Short dollar positions are finally beginning to be cut back, which is a necessary condition for further weakness but also...

The post USD: Short USD Positions Are Finally Beginning To Be Cut Back; What Does It Mean For EUR/USD? – SocGen appeared first on Forex Crunch.