EUR/USD: BofA’s Expectations for This Week

  • BofA expects the European Central Bank to announce a 25-basis point rate cut in this week’s decision, in line with market consensus.
  • The bank anticipates a slight dovish shift in the ECB’s forward guidance, which could weigh on the euro and push it towards a retest of the critical 1.1000 level in EUR/USD.

Bank of America (BofA) is in line with market expectations, predicting that the European Central Bank (ECB) will announce a 25-basis point rate cut in its decision this week. 

BofA also foresees a modest downside risk for the EUR, driven by a potential dovish shift in the ECB’s forward guidance. 

In the EUR/USD, recent price action saw lower lows and lower highs on the four-hour chart, hinting at a possible bearish reversal and signaling the end of the bullish trend. 

An important question: What might happen at the next test of the 1.1000 level? This level was a key battleground for the pair in 2023. 

For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.  

    

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