EUR/USD risks a drop to 1.0450 – OCBC

FXStreet (Edinburgh) - Emmanuel Ng, FX Strategist at OCBC Bank, sees chances that the pair could drop further towards the mid-1.0400s.

Key Quotes

“Wire reports indicating internal ECB discussions on potential QE measures are expected to keep the EUR on the defensive”.

“Notably, markets are looking for a deposit rate cut next week, with the bund curve continuing to soften overnight”.

“In a nutshell, expect the pair to continue to remain top heavy while contemplating the 1.0600 floor ahead of 1.0500 and 1.0450”.