EUR/USD: to remain in ranges, despite Fed speculations – BTMU

By FXStreet FXStreet (Guatemala) – Analysts at Bank of Tokyo Mitsubishi explained that they are tempted to indicate a bearish bias here given the fact that EUR/USD has corrected lower today having failed again to breach the 1.1500 level.

Key Quotes:

“That may well encourage renewed technical selling if the momentum remains in place through the remainder of today. Of course the Dudley speech at 1530 BST may well change the direction again but we see upside perhaps being capped ahead of the ECB meeting on 22nd October.”

“Nowtony’s speech this morning was interesting in that he was particularly negative on the growth outlook for the euro-zone and was explicit in stating that the ECB was failing in its goal of price stability.”

“There may well be a build-up of speculation of additional monetary easing next week, although we expect no change in stance at the meeting – admittedly though, it is becoming a close call. Still, the market appears convinced that the Fed will not be in a position to raise rates this year and that plus the ECB speculation is likely to keep EUR/USD within recent trading ranges.”
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Source:: FX Street