An ECB pivot would anchor a possible low for EUR/USD; what’s the trade? – TD
TD Research discusses its expectations for next week’s ECB policy meeting.
“The ECB is likely to announce that its APP programme will end in May, and prepare markets for a June rate hike,” TD notes.
“We continue to like EURUSD downside through the start of Q2 on a mix of drivers. An ECB pivot would anchor a possible low for EURUSD, though a break of the 1.12 high requires settlement on the US terminal rate pricing. That said, a more active ECB is likely to reinforce the lows in EURCHF and would favor buying EURGBP dips towards 0.83,” TD adds.
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