Market news
11.06.2021, 08:40

EUR/USD: The risks are skewed to a break to the upside – MUFG

FXStreet reports that economists at MUFG Bank discuss EUR/USD prospects.

“The ECB kept the guidance of PEPP purchases being at a ‘significantly higher pace” than in the early months of the year rather than altering the guidance to simply purchases being “maintained around the current pace’, which we would view as giving the ECB less wiggle room to slow purchases later in Q3.”

“While the PEPP guidance was in line with market expectations, the changes that did take place certainly were on the optimistic side. The ECB dropped its downside risk assessment over the near-term to simply conclude risks were balanced while the upgrades to GDP and inflation forecasts were a little stronger than expected.”

“ The 10yr UST bond yield has now dropped 19.3bps on a closing basis over the last five trading days to yesterday – the largest decline since 2nd April last year. The US-EU 10yr yield spread has fallen notably (12bps) in the same period, to below 170bps for the first time since late February. That leaves the risks skewed to a break to the upside in EUR/USD.”

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location