The EUR/USD pair trades lifeless below 1.1600, with its range shrinking even further this Wednesday. Investors are expecting the ECB to introduce a full-blown QE tomorrow, following the stunning decision took by SNB last week to lift the EUR/CHF cap. At this point, market talks are of €1T in the form of a bond purchasing program, but the true won’t be unveiled until Thursday. In the meantime, the EUR/USD pair continues to consolidate near a fresh 11 year low, overall bearish.
Whilst the reaction is hard to predict, as larger the QE the more chances of further EUR declines, making of the common currency an even cheaper asset. Local share markets and yields are on contrary, expected to gain with the news. Below this January low of 1.1458, the pair has little in the way down to 1.1400, with a break below it exposing 1.1360 price zone. Is hard to imagine a scenario with a rising EUR, with a break above 1.1645 required to begin to consider an upward extension up to 1.1720.
View Live Chart for EUR/USD
Whilst the reaction is hard to predict, as larger the QE the more chances of further EUR declines, making of the common currency an even cheaper asset. Local share markets and yields are on contrary, expected to gain with the news. Below this January low of 1.1458, the pair has little in the way down to 1.1400, with a break below it exposing 1.1360 price zone. Is hard to imagine a scenario with a rising EUR, with a break above 1.1645 required to begin to consider an upward extension up to 1.1720.
View Live Chart for EUR/USD
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