Flash: EUR/USD focused on ECB policy meet and NFPs – BTMU

FXstreet.com (Barcelona) – FX Strategists at the Bank of Tokyo Mitsubishi UFJ note that the euro continues to recover lost ground following the ECB’s decision to lower their refinancing rate to 0.25%.

Key Quotes

“The ongoing tightening of liquidity conditions in the Euro-system is encouraging a stronger euro in the near-term as the EONIA rate grinds higher.”

“We do not expect that the ECB will ease monetary policy further at next week’s policy meeting which will likely be required to weaken the euro materially.”

“However, the unveiling of the latest ECB staff forecasts and President Draghi’s press conference should signal that …read more