EUR/USD (current price: 1.1085)
The Euro turned sharply lower following the announcement regarding the possible extension of the QE program that will likely lead to a further decline in bond yields in Europe. The outlook for the European economy is even more negative, as the Brexit adds uncertainty to the forecasts. The recent numbers were slightly better than expected, as German Retail Sales and the Eurozone CPI both came in above the consensus estimate, but still close to recessionary territory.
Our assessment: EUR/USD had another volatile session as it got back to the crucial 1.10 level, but rebounded yet again towards the 200-day MA in late trading. The most watched indicator will likely stay in the spotlight in the coming weeks.
