EUR remains under pressure ahead of ECB – Danske Bank

By FXStreet Analyst Kristoffer Lomholt at Danske Bank sees the single currency vulnerable in light of the upcoming ECB meeting and the likeliness of further easing measures in order to lift inflation in the region.

Key Quotes

“Generally, the EUR has weakened against major currencies on the back of weak HICP numbers in the euro zone, prompting speculation that the ECB will have to revise down its inflation forecast further and loosen monetary policy more aggressively”.

“We expect EUR-crosses, led by EUR/USD and EUR/SEK, to trade with a heavy tone into the ECB meeting on 10 March”.

“We expect a 10bp rate cut, the introduction of two-tier deposit and front-loading of QE, roughly in line with market expectations but risks are skewed towards a more aggressive step”.
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Source:: FX Street