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.
“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.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.