EUR/USD remains far from a test of 1.10 – Westpac

By FXStreet FXStreet (Edinburgh) – Strategists at Westpac have ruled out a visit to the 1.10 area in the near term.

Key Quotes

“Draghi’s dovish policy signal should understandably cap EUR into the ECB’s Mar 10 policy meeting, the pair unlikely to make a serious dent at 1.10 if at all in coming weeks”.

“Fed hike odds have been materially trimmed back too (now down to 40% odds in favour of a hike by mid-2016) and may have if anything gone too far”.

“With so little now discounted even a watered down Fed normalisation signal could support the USD. A soft Jan advance Eurozone CPI unlikely to do EUR any favours either”.
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Source:: FX Street