EUR/USD failed to hold intra-day gains on Friday as investors again struggled to take a clear view on whether the Fed will cut by 25 or 50bp, ING’s FX strategist Chris Turner notes.
“This week, the focus will be Thursday's European Central Bank meeting. Here, a 25bp cut looks like a done deal, while the quarterly forecast update should be the main takeaway. Any big downward revisions to back-year inflation forecasts could hit the euro, but such a change in forecast is far from guaranteed.”
“Expect EUR/USD to not drift too far away from 1.1100 over the next couple of days with the US election debate perhaps the first big driver this week.”