EUR/USD to further decline on unchanged guidance from the ECB

The EUR/USD pair crawls towards 1.08 with little help coming from the European Central Bank (ECB) tomorrow. Economists at Scotiabank expert the world’s most popular currency pair to sustain further losses on unchanged guidance from the ECB.

On the French elections front, early runoff polls show Macron defeating Le Pen. With three weeks until the Fed’s May meeting where it will likely roll out a 50bps hike, unchanged guidance from the ECB tomorrow will result in a continued risk of EUR losses over the coming days particularly ahead of the second round of French presidential elections on the 24th.

Early runoff polls show Macron is defeating Le Pen 54% to 46% according to Opinionway and 52.5% vs 47.5% according to Ifop, but momentum can quickly change until the vote; particularly following the televised debate on the 20th.