EUR/USD to continuing grinding lower towards bottom of 1.0500-1.1000 range – MUFG

Will the ECB’s upcoming policy meeting turn the tide for EUR/USD? Economists at MUFG Bank analyze the pair’s outlook.

A final hike could provide a temporary lift for the EUR

We expect EUR/USD to continue to fall back towards the bottom of this year’s trading range between 1.0500 and 1.1000. 

An ECB hike would give the EUR only a temporary lift. 

See:

• ECB Preview: Forecasts from 10 major banks, a hike or a hawkish pause?

• ECB Preview: Three scenarios and their implications for EUR/USD – TDS