EURUSD is approaching monthly-low at 1.1027 as Germany central bank warned that “economic activities may decrease to some extent again in this quarter.”
and some signs of an economic recession may put pressure on ECB to implement more non-standard measures.
So many Governing council officials may be willing to implement a more “negative interest rate policy.”
It all can prepare the European households and businesses for a more accommodative stance as the central bank is prepared to employ all of its instruments,as appropriate to ensure that the inflation will move to a sustained manner.
However,it remains to be seen whether the Governing council officials will issue a major announcement on 12th September as ECB president,Mario draghi will step down at the end of October.
With that said,and EURUSD being at sideway,it is anticipated that the pair will make it down to 1.1027 as it is seeking a new support.