9 Jan 2014
Flash: EUR/USD could head lower on deposit cut - Danske Bank
FXstreet.com (Barcelona) - Danske Bank strategists feel that EUR/USD could head lower today following the ECB meet.
Key Quotes
“if Draghi at today’s ECB press conference highlights the possibility of a deposit cut down the road as a response to the omnipresent deflation risks in the euro-zone, we expect EUR/USD to head lower.”
“This would underline that the ECB is closer to overcoming the mental barrier to negative rates at a time when Fed tapering is on track (indeed, ADP figures yesterday point to a decent payroll report tomorrow).”
Key Quotes
“if Draghi at today’s ECB press conference highlights the possibility of a deposit cut down the road as a response to the omnipresent deflation risks in the euro-zone, we expect EUR/USD to head lower.”
“This would underline that the ECB is closer to overcoming the mental barrier to negative rates at a time when Fed tapering is on track (indeed, ADP figures yesterday point to a decent payroll report tomorrow).”