EUR/USD: Balance Of Risks Into Next Week's ECB - Nomura

Nomura FX Strategy Research discusses the EUR outlook going into next week's ECB meeting.

"We do not expect any great EUR reaction to the ECB announcement, but keep our medium-term bullish view on EUR. Even after the fairly disappointing October decision, EUR has been trading resiliently, supported by the improving basic balance of the BoP, in our view.

Even though the ECB may provide no fresh catalysts next week, EUR downside risks should be limited.

Into the middle of next year, we expect ECB communications to turn gradually more hawkish to let markets price the end of QE in September. Then, we think another acceleration in EUR appreciation is likely, while range-trading continues for now," Nomura rgues.

Source: Nomura Securities Research