Analysts from The Bank of Tokyo-Mitsubishi UFJ, expect the euro to remain under pressure and see the EUR/USD pair trading between 1.0400 and 1.0800 next week.
“We expect the euro to remain under downward pressure against the US dollar in the week ahead. Our short-term valuation model continues to signal building downside risks although the EUR/USD rate has temporarily found some technical support at around the 1.0600-level.”
“We expect the minutes from the February FOMC meeting to be interpreted more hawkishly than the accompanying policy statement. The market is still eagerly awaiting further details of President Trump’s tax plans which could provide support for the US dollar."
“Higher political risk in Europe remains a weight on the euro in the near-term. The market will be watching closely developments at the upcoming Eurogroup meeting on the 20th February for evidence that the Troika are moving closer to reaching a compromise agreement to extend financing to Greece.”
“The latest PMI surveys for February are expected to signal that the economic growth in the euro-zone continues to strengthen providing some support for the euro.”
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