EUR/USD likely to remain confined to recent ranges - TDS

Analysts at TD Securities point out that EURUSD spiked to a marginal new low as investors placed an early emphasis on the dovish elements of the ECB meeting.

Key Quotes

“The lack of significant follow-through selling pressure since suggests these expectations were largely priced in. We think EURUSD is likely to remain confined to recent ranges until fresh catalysts emerge.”

“Today's IFO report could have potential to do so, but the USD also faces an increasingly challenging outlook. Instead of EURUSD, we think EUR bears may find greater satisfaction in EURJPY shorts if the recent rebound in risky assets runs out of steam.”