Forex Flash: EURUSD sell-off to be more pronounced - DailyFX

FXstreet.com (Barcelona) - EUR/USD continues to under-perform during the Asian session, currently breaking 1.2750 to hed towards immediate support at 1.2740. According to David Song, Currency Analyst at DailyFX, "the euro may face additional losses over the next 24-hours of trading should the ECB rate decision cast a dour outlook for the region."

"Although the ECB is widely expected to preserve its current policy in November, central bank President Mario Draghi is likely to sound more dovish this time around as the debt crisis persistently drags on the real economy. As the fundamental outlook for Germany deteriorates, the Governing Council may now look to target the benchmark interest rate, and we may see the central bank carry its easing cycle into the following year in order to combat the deepening recession" David adds.

"We anticipate to see a more pronounced selloff in the EURUSD, and the pair looks poised to give back the rebound from the yearly low (1.2041) as the governments operating under the single currency become increasingly reliant on monetary support."

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