EUR boosted by the ECB – Nomura

Analysts at Nomura explain that EUR has received another boost higher following yesterday’s ECB meeting as Draghi’s view on FX moves did not shift since the last meeting, showing concern over the volatility rather than speed of EUR appreciation.

Key Quotes

“Our economists still expect ECB normalisation to continue this year, with small shifts to the forward guidance at the March meeting, before announcing the termination of the APP in June. We reiterate our expectation for a 10bp rate hike in December and expect EUR/USD appreciation to continue towards 1.30 by year-end.”