What Euro Bulls Will Be Watching If Draghi Makes Dovish Turn
- Positioning data, U.S. rate differential, technical signal
- ECB may reference currency strength, raising selloff risk
Danny Blanchflower Expects 'Caution' in ECB Decision
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A dovish surprise from the European Central Bank could inflict a world of pain on euro bulls.
Betting on the shared currency has almost become a sure thing as overall dollar weakness and speculation that ECB President Mario Draghi could signal his intent to scale back monetary stimulus at Thursday’s policy meeting combined to push it to a 14-month high. That has strategists such as Shahab Jalinoos of Credit Suisse Group AG concerned.