EUR/USD: Reading Draghi’s Dovish Bluff; Buy Any EUR/USD Dips Post-ECB – ING

EUR/USD is awaiting patiently or not so patiently, in range ahead of the ECB meeting. Our preview discusses a buying opportunity and here is a similar angle from ING:

Here is their view, courtesy of eFXnews:

ING FX Strategy Research discusses EUR/USD outlook around the ECB policy meeting on Thursday and thinks that the name of the game for markets will be reading President Draghi’s dovish bluff at this week’s ECB meeting.

“While the central bank is likely to toe the party line of a strong EUR being a ‘source of uncertainty’, President Draghi may struggle to find evidence suggesting that the recent move higher in the EUR has been anything but justified by fundamentals (albeit weaker fundamentals else-where as well)…,” ING argues,

“As such, attempts by President Draghi to talk down the EUR this week may prove ineffective – with markets in recent years getting better at spotting dovish central bank bluffs.

We remain inclined to fade any post-ECB meeting move lower in EUR/USD, with the 1.2140/50 area providing support. Any move below here is a good buying opportunity; the ECB cannot change the positive fundamental EUR backdrop,” ING advises.

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