Forex Flash: Euro expected to weaken further

Forex Flash: Euro expected to weaken further

<!--TITOL:

Forex Flash: Euro expected to weaken further - UBS

FITITOL--> FXstreet.com (San Francisco) - According to UBS, there is a sense in the marketplace that the rally following last week's EU summit might extend.

However, EUR/USD has traded under pressure this Wednesday in North America, last at1.2536 vs. 1.2605 late Tuesday. In the global day ahead, market consensus is looking for a 25bp cut from the ECB.

“The euro has to some extent decoupled from market risk more broadly, not least as the ECB is expected to ease monetary policy further,” says UBS. “We expect this trend to continue and the euro to weaken further to our 3m target of 1.20, even if overall risk sentiment remains well supported.”