EUR/USD could see its decline limited – OCBC

FXStreet (Edinburgh) - Emmanuel Ng, FX Strategist at OCBC Bank, sees the downside in the pair as limited in the near-term.

Key Quotes

“EUR_USD may find limited downside beyond the short term with the ECB’s Praet warning against inaction with respect to further monetary accommodation in view of the still deteriorating inflation outlook”.

“In the interim, EUR-USD may be expected to base build in a 1.0600-1.0800 range pending further cues”.

Nov 20, 2015

Draghi’s speech underline euro zone’s inflation worries and hint at more easing

Speaking at the European Banking Congress in Frankfurt , ECB supremo Mario Draghi mentioned ECB’s growing concern that the rate of inflation in euro area, currently 0.1%, is slipping further from their target of close to under 2 per cent. He said the central bank will do everything necessary to ensure that inflation returns rapidly toward the goal of just under 2%, president. “If we decide that the current trajectory of our policy is not sufficient to achieve that objective, we will do what we must to raise inflation as quickly as possible”.

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