5 Feb 2014
Flash: Euro softer on ECB expectations – UBS
FXStreet (Córdoba) - Ahead of the European Central Bank meeting, the UBS analyst team sees a 50-50 chance for a small rate cut that will weaken the euro.
Key Quotes
"Markets are eagerly awaiting the ECB press conference this Thursday. What will the ECB decide and what will it promise for the future? We see a 50-50 chance for a small rate cut".
"Other easing measures are also on the table. This is very much in line with market expectations".
"Nevertheless, when the ECB confirms a readiness to ease, we expect the EUR to weaken. Therefore, we think the market has overcome the negative surprise of US ISM on Monday and is ready for a lower EUR/USD".
Key Quotes
"Markets are eagerly awaiting the ECB press conference this Thursday. What will the ECB decide and what will it promise for the future? We see a 50-50 chance for a small rate cut".
"Other easing measures are also on the table. This is very much in line with market expectations".
"Nevertheless, when the ECB confirms a readiness to ease, we expect the EUR to weaken. Therefore, we think the market has overcome the negative surprise of US ISM on Monday and is ready for a lower EUR/USD".