Barclays Capital FX Strategy Research discusses EUR/USD outlook ahead of the ECB December policy meeting on Thursday.

"We expect the ECB to keep policy settings and forward guidance unchanged, in line with consensus expectations and market pricing, after announcing in October an extension of QE until September 2017 at a reduced pace of EUR30bn per month.

We do not see compelling risk-reward in pre-positioning ahead of the meeting.

…Although the acknowledgement of rising dissenting views could pose upside risks to the EUR, we expect President Draghi to continue arguing against premature monetary policy normalization. In that respect, we expect the December ECB meeting to prove uneventful," Barclays argues.

Source: Barclays ResearchOriginal Article