EUR/USD to hold the 1.17-1.20 range as ECB slows bond purchases – TDS
|The European Central Bank confirmed that the pace of PEPP purchases would be "moderately lower" in Q4, offering little impetus for EUR/SD. The 1.17-1.20 range should persist for now, but economists at TD Securities like using dips as buying opportunities ahead of the German election.
A recalibration, not a taper
“The ECB delivered pretty much as expected in terms of policy settings and forecast tweaks. They went at length to avoid sending an overtly hawkish message, but the policy settings have notched up a gear nonetheless.”
“For now, EUR/USD is likely to hold the 1.17 to 1.20 range; we prefer to buy dips towards the lower end and we think we break 1.20 through the autumn.”
“Our other tools show that the EUR trades at a modest discount, and we like scaling into EUR longs ahead of this month's German election.”
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