Barclays: Little to disturb the EUR downtrend – eFXnews

FXStreet (Barcelona) - The eFXnews Team notes Barclays previews the events ahead in the eurozone and adds that the divergence in between Fed and ECB will keep the single currency’s downtrend intact.

Key Quotes

"The ECB is scheduled to begin purchases of European Government Bonds under its recently expanded asset purchase programme on Monday.”

“The Eurogroup meeting (also Monday) will be mostly devoted to Greece and provide an opportunity for progress on planned reform but a formal agreement remains unlikely at this stage.”

“In terms of data, we look for euro area industrial production (Thursday) to increase 0.3% m/m in January (consensus: 0.2%) consistent with recent business surveys showing a minor improvement in the manufacturing sector"

"However, as we have noted previously, we do not believe a stabilisation of euro area activity will be enough to support a rally in EURUSD in the context of diverging ECB-Fed monetary policy and widening EU-US real interest rate differentials"

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