EUR/USD: Draghi may want at softer levels? – Rabobank

By FXStreet FXStreet (Guatemala) – Analysts at Rabobank explained that Broth the Fed and the ECB have been candid.

Key Quotes:

“The forward guidance that has been offered in recent weeks by both the Federal Reserve and the ECB appears to have reached new heights of candidness. According to Fed Vice Chair Fischer this week, the Fed has done everything it can to “avoid surprising the markets and governments when we move”.

Meanwhile ECB President Draghi has confirmed that that the governing council will thoroughly re-examine at its December meeting the factors that “are slowing the return of inflation to 2%”and that the governing council will do “what we must” to raise price pressures. Draghi has previously used forward guidance with powerful effect.

However, investors have had plenty of time to position themselves for the likelihood that December will bring both a Fed rate rise and a loosening in policy from the ECB. If the ECB has any desire to push the value of EUR/USD to softer levels, Draghi may still have to invoke an element of surprise.”
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Source:: FX Street