Analysts from The Bank of Tokyo-Mitsubishi UFJ, see the EUR/USD pair with a neutral bias moving between 1.1100 and 1.1350, waiting for a fresh catalyst as narrow trading range holds.
Key Quotes:
“The euro continues to trade within a very narrow range against the US dollar in the near-term awaiting a catalyst for fresh direction.”
“The main focus in the week ahead from the US side of the equation will be the release of the latest updates on the health of the economy including the ISM and ADP surveys for September, and the latest opinion polls ahead of the Presidential election.”
“The recent narrowing of Hillary Clinton’s lead in the polls suggests a close race which if sustained could begin to weigh more on the US dollar on fears over Donald Trump becoming President.”
“In Europe, investor concerns over the health of European banks have re-heightened over the past week but are not expected to materially weaken the euro in the near-term. The key event on the euro side of the equation will be the flash inflation data tomorrow and the ECB minutes of its September meeting. Inflation is expected to drift higher while the minutes may reveal some thinking behind the reasons for launching staff studies on best ways to sustain QE policies.”
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