EUR/GBP approaching a top – TDS

By FXStreet FXStreet (Guatemala) – Analysts at TD Securities explained that with Draghi signalling a return to an overtly dovish stance at January’s ECB meeting, we similarly shift to looking for downside risks to EUR and rate cut in March.

Key Quotes:

“With FX markets still nursing wounds from December’s unexpected reversal, though, investors may be slow to embrace this as an unconditional promise just yet.

This is likely to re-sensitize EUR to risk appetite going forward. Oil prices are likely to become a more important driver for EUR, particularly against USD.

These developments should temper the EUR’s outperformance on key crosses. We think EUR/GBP may be approaching a top for this cycle.

EUR/USD is likely to see heightened two-way risks. This may prevail until a sustained break of recent trading ranges provides a stronger directional impulse.”

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Source:: FX Street