ECB: Removal of QE flexibility to support EUR/USD – Danske Bank

Mikael Olai Milhøj, Senior Analyst at Danske Bank, suggests that the removal of QE flexibility, which they expect to see from the ECB today, could support EUR/USD on impact but a dovish tone at the press conference would be likely to help moderate such a move somewhat.

Key Quotes

“We still expect the cross to stay in the 1.21-1.26 range near term; a key technical level is 1.2555 (YTD high). For EUR, what is important at present is that the ECB keeps up the sense of a continued move towards policy ‘normalisation’ and that will continue to support the cross further out.”