Citibank experts forecast a range of 1.0711-1.0990 for EUR/USD.

Home / Citi Bank / Citibank experts forecast a range of 1.0711-1.0990 for EUR/USD. FORECAST

Citibank Wealth Management published its Weekly FX insight report on January 25 analyzing the performance of major currency pairs as of January 22. The article discussed ECB President Mario Draghi’s announcement, which said that oil prices dropped 40% since December 2015 and thus imply that 2016 inflation may be lower than ECB’s expectations. That is why the central bank may review its current monetary policy in March.

Based on increasing inflation downside risk, the analysts at Citibank concluded that the ECB may expand QE in the first half of 2016 and may do it in March at the soonest. This can include expansion of QE, extension of QE and deposit rate cuts, which will possibly undermine the EUR.

The analysts expect that EUR/USD currency pair may range between 1.0711-1.0990 (8.35-8.57) with downside bias.

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