EUR/USD: Downside looks compelling on dovish ECB call – TD Securities

Dhwani Mehta FXStreet

Analysts at TD Securities offer their outlook on the EUR/USD pair, in the face of upcoming European Central Bank (ECB) monetary policy decision due later on Thursday at 1145 GMT.

Key Quotes:

“Expect a 20bps rate cut tiering, EUR 40bn per month of QE and no rate hike projection until mid-2021 at the earliest.

We're more comfortable with the rates view than QE, as QE will likely be a contentious decision.

Our dovish ECB call has us looking for downside risks to EURUSD. We think spot will be more sensitive to a large QE announcement than rate cuts as much of the expected Fed/ECB policy path differential already looks priced.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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