EUR/USD: Euro continues under downward pressure - BTMU

Analysts from The Bank of Tokyo-Mitsubishi UFJ, have a bearish outlook on the EUR/USD pair and see it trading between 1.0825 and 1.1100, next week. 

Key Quotes: 

“The euro continues to remain under downward pressure against the US dollar moving closer to the bottom of this year’s narrow trading range.”

“Today’s policy signal from the ECB has contributed to a more volatile euro although our take was that the message was neutral and broadly in line with expectations. The volatile euro reaction clearly highlights that market participants are becoming nervous and don’t like ECB policy uncertainty. The ECB did not provide any further clarity over the future of their QE programme at today’s meeting. The important decisions are likely to take place in December.”

“The main focus in the week ahead for the euro will be the release of the preliminary euro-zone PMI surveys for October which have recently been signalling that growth is likely to continue to slow. Renewed upward momentum for the US dollar is unlikely to be derailed yet although strength does appear to be overshooting fundamentals. In the week ahead there are no major US economic data releases or events scheduled.”