EUR may be biased to the downside unless the Fed takes a more dovish stance – OCBC

FXStreet Insights Team FXStreet

EUR/USD continues to drift a touch lower. Economists at OCBC Bank analyze the pair’s outlook.

Market bets have shifted in favour of an earlier cut in April

Market bets have shifted in favour of an earlier cut in April (more than 80% priced vs. <20% probability a week ago).

The risk of an earlier ECB cut and still contractionary PMI readings in Europe suggest that EUR may be biased to the downside for now unless the Fed takes a more dovish stance at the upcoming FOMC.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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