MUFG Research discusses EUR/USD tactical outlook and maintains a bearish bias for the coming week, expecting the pair to trade downward in a 1.1275-1.0950 range in the near-term.
"We are sticking to our bearish bias for the week ahead. The EU election results did not provide an immediate catalyst to drive the euro lower although risks remain skewed to the downside in the near-term. The increased risk of a more disruptive “No Deal” Brexit and renewed budget tensions between the Italian government and EU both pose downside risks for the euro," MUFG adds.
"We expect the ECB to reiterate that risks to the growth outlook in the euro-zone remain tilted to the downside, and they may even go further and emphasis that those risks have increased recently. The re-escalation in US-China trade tensions and building concerns over slowing global growth should maintain the ECB’s dovish policy stance," MUFG adds.