MUFG: Range trading in EUR/USD

MUFG analysts note that the EUR/USD pair has moved back into the middle of the current 1.1200 to 1.1500 trading range against the USD.

Key Quotes

“The recent softer US data flow (retail sales & IP) has weighed on the US dollar over the past week.”

“In addition, the Fed has provided a further dovish policy signal over their plans for the balance sheet. The release of the US GDP report for Q4 will be scrutinized closely to assess the health of the US economy heading into this year.”