EUR/USD downside below 1.1050 on the cards after Nonfarm Payrolls?
By FXStreet FXStreet (Guatemala) – EUR/USD has stuck to a tight range ahead of the key Nonfarm Payrolls looking over the FX space today. The unit got plenty of action overnight from the announcements of the ECB who set a gloomy picture for the global and EZ economy.
In respect of the EZ, the ECB have raised the ceiling of sovereign bond ownership to 33% from 25%.” Analysts at Brown Brothers Harriman explained that this eases a self-imposed constraint on purchases, and will give the ECB more operational flexibility. They also cut their growth forecasts lower. So, 2015 GDP growth is now seen at 1.4% which is down from 1.5%.
ECB cuts growth and inflation outlook
Then, growth next year has been cut to 1.7% from 1.9% and 2017 GDP growth down to 1.8% from 2.0%. Inflation forecasts were also cut by a bit more than growth. So, CPI this year is expected to rise by 0.1% and below the 0.3% estimated in June. Then, the 2016 inflation forecast has been cut to 1.1% from 1.5% and the 2017 CPI forecast was trimmed back to 1.7% from 2.0%.
The timing of this move is not favourable for …read more
Source:: FX Street
