EUR/USD: Trading with a downside bias – Danske Bank

EUR/USD was in a wide range yesterday as the ECB conveyed its stance, ending the press conference a big figure down. Focus now turns to the fiscal side in both the US and Europe, according to analysts at Danske Bank

Key quotes 

“The ECB should not be considered a game changer for EUR/USD - if anything merely a source of volatility.”

“For now, EUR/USD looks to trade with a downside bias even if Fed’s new repo operations might alleviate pressure a tad.” 

“EUR/USD OIS basis widened sharply yesterday. The initial market reaction was positive (tighter) after NY Fed opened an USD500bn 1M and 3M repo operation.”