EUR/USD looks to ECB for near term direction – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, sees the single currency under pressure ahead of the ECB event later today.

Key Quotes

“The Fed minutes last night failed to move USD much and while the dollar has seen tentative signs of support from tighter USD liquidity, in order to change the dollar game fundamentally, we will need the Fed’s Powell to hint at a more hawkish policy stance in his testimony next week”.

“Today, focus will be on the ECB’s minutes for EUR: to the extent that these spell out worries over euro appreciation, it could lead markets to have second thoughts about the rally since the New Year, but in our view the risk is rather that attention will centre on a possible shift in guidance in March, which would support the single currency”.