EURUSD and Risk Expectations are Set High for the ECB and Fed
Risk appetite finished strong into the end of the week, and there wass little mistaking its source: stimulus expectations. The Fed and ECB policy meetings in the week ahead provide an excellent opportunity for these deep pocket bulls to offer their support. However, there are serious doubts as to whether they will actually provide speculators with the level of relief they seek (much less if they are willing to support capital markets without structural solutions at all). Expectations have been set high and the status quo is a bearish fundamental road. One thing is clear, next week will be defined by volatility and speculation.