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Jan 21 - 11:55 AM

EUR/USD - COMMENT-ECB Is All Talk, No Action; EUR/USD Will Rise

By Jeremy Boulton  —  Jan 21 - 10:27 AM

European Central Bank Governor Christine Lagarde mentioned the strength of the euro several times.
That's not going to stop it from rising.
Without action, EUR/USD is set to rally further and some action might send it even higher.

Intervention isn't on the radar and with Europe keen to foster better relations with a new U.S. administration, it probably never will be.

Deeper cuts of interest rates could weigh on EUR, but policy makers who think risks to the economy are less pronounced are not going to lower rates.

Should ECB tweak other stimulus measures, it'll fuel gambling.
December's measures pushed EUR's trade-weighted value up by 1%

Greater stimulus should take a toll on a negative-yielding euro if the risk rally intensifies, but not EUR/USD, because Europe has been outgunned by the United States.

EUR/USD longs are set to grow and EUR/USD is set to rise.
The pair should reach 1.25-1.26 before longs become a problem, but might reach 1.2800.

For more click on FXBUZ


EURUSD targets Click here

Source:
Refinitiv IFR Research/Market Commentary

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