EUR/USD capped near 1.1400 – Westpac

Strategists at Westpac expect EUR/USD to resume its downside following recent peaks near 1.1400 the figure.

Key Quotes

“The combination of Draghi comments that the ECB “we will not hesitate to act” and the sharp downward correction to Bundesbank HICP German inflation forecasts to 0.25% from 1.1% in December "due primarily to the energy component's significantly sharper negative effect compared with the December projection” opens up the door to a larger than expected March 10 response from the ECB”.

“This very much chimes with recent comments from Weidmann that “economic skies are more cloudy than a few weeks ago”.