BTMU FX Strategy Research discusses EUR/USD outlook into the coming week, noticing that the pair has staged another failed attempt to break out above the top of its current range against the US dollar between 1.1500 and 1.2000-levels.
"We see no clear fundamentals catalysts in the week ahead to bring an end to current range trading dynamics. The US dollar leg is likely to be the main driver of performance. There have been encouraging signs of progress on US tax reform legislation which is offering more support for the US dollar, although the market still remains sceptical over the potential stimulative impact. The successful passage of tax reform by year end is now judged as more likely than not. The Fed is not expected to speed up the pace of planned rate hikes in light of low inflation," BTMU argues.
BTMU is neutral on EUR/USD around current levels, and sees the pair trading in 1.1650-1.2000 range in the near-term.
Source: BTMU ResearchOriginal Article
