EUR/USD: Close above 1.20 to reinforce the upside seems unlikely – OCBC

EUR/USD is under pressure around 1.1950 after the European Central Bank (ECB) accelerated asset purchases leaving the bund yields heavy. Economists at OCBC Bank think that the broader picture is still favourable to the USD. 

Key quotes

“The ECB delivered market expectations and will be stepping up the PEPP purchases.” 

“The EUR/USD pair is USD and risk-driven for now. The pair will need to close above 1.2000 to see continued upside, but that level looks a bridge too far at this juncture.”