After the meeting of the ECB: What to expect from EUR/USD

Governor of the European Central Bank Mario Draghi made a signal on Thursday press conference that we can expect expansion of the stimulus in March.

Financier emphasized inflation risks, while his remarks continue to weigh over the united currency in the coming days, note forex strategists of BTMU. According to them, however, the EUR/USD pair will likely remain locked in a trading range in the short term as the euro can be supported by the growing anti-risk sentiment.

Separately, analysts believe that the Fed will focus on the more "peaceful" tone after its meeting next week, which will put moderate pressure on the dollar. From BTMU emphasize, however, that at some stage the US regulators don't have special reasons for concern, and so do not expect sharp movements in EUR/USD.

Their colleagues from BNP Paribas are bearish and recommended selling the euro against the dollar, advising investors to consider opening short positions at current levels to 1.0400. Protective stop to limit losses is set at 1.1005.

Even before the meeting of ECB policymakers of the investment fund BlueBay Asset Management predicted development of the events and announced that they open short positions on EUR/USD with the target of 1.0500.