EUR/USD to remain under pressure – MUFG

By FXStreet FXStreet (Córdoba) – Analysts from The Bank of Tokyo-Mitsubishi UFJ, expect EUR/USD to move with a bearish bias next week in a range between 1.0300 and 1.0800, ahead of the European Central Bank meeting.

Key Quotes:

“The euro is likely to remain under downward pressure against the US dollar heading into the ECB’s upcoming policy meeting in the week ahead. Investor expectations for more aggressive ECB easing are building ahead of the meeting.”

“We do not expect the ECB to disappoint market expectations for more aggressive easing at their upcoming meeting. Our short-term valuation model continues to signal that EUR/USD remains subject to downside risks in the near-term and will likely fall to new cyclical lows before year end.”

“In contrast the US dollar is poised to break higher with the Fed expected to soon begin raising rates. Confirmation of still solid US employment growth in November should reinforce upward US dollar momentum heading into the upcoming FOMC meeting.”
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Source:: FX Street