Euro Stabilizes Ahead of ECB Decision on Spot Demand
BNY's Geoff Yu notes the Euro is stabilizing before the ECB decision, driven by improving spot flows and hedge unwinding, though forward and swap demand remains weak.
EURUSD
BNY analyst Geoff Yu reports that the Euro is finding support ahead of the upcoming European Central Bank decision. The stabilization is attributed to improving spot demand and hedge unwinding, which are bolstering Eurozone assets.
However, the recovery is tempered by persistently weak demand in forward and swap markets, indicating that broader institutional conviction remains cautious. The divergence between spot and derivative markets suggests the move may be tactical rather than a sustained turnaround.
Source: FXStreet Forex News