Euro Forecast: After ECB, Downside in Focus as Italian Issues Fester

Euro Forecast: After ECB, Downside in Focus as Italian Issues Fester

Fundamental Forecast for EUR/USD: Bearish

The Euro fell sharply across the board after ECB President Draghi’s press conference on Thursday, as it was revealed that while the QE program will end in December, that doesn’t mean other programs couldn’t be started up (i.e. TLTROs).

– Amid volatility in global bond and equity markets, the safe haven crosses (EUR/CHF, EUR/JPY, and EUR/USD) were three of the four biggest losers last week.

– The IG Client Sentiment Indexhas quickly flipped to bearish as retail traders buy the Euro dip.

See our long-term forecasts for the Euro and other major currencies with the DailyFX Trading Guides.

The Euro was the third worst performing major currency last week, losing ground against all but for the British Pound (EUR/GBP +0.44%) and the New Zealand Dollar (EUR/NZD +0.94%). Amid volatility in global bond and equity markets, the safe haven crosses (EUR/CHF -1.55%, EUR/JPY -0.87%, and EUR/USD -0.97%) were three of the four biggest losers last week. But issues outside of the Eurozone aside, the European Central Bank gave traders reasons anew to sell the

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/eur/2018/10/28/Euro-Forecast-After-ECB-Downside-in-Focus-as-Italian-Issues-Fester.html