As estimated, EURUSD has continued its sideways move. Having struggled around the 1.1800 level for most of the day, EURUSD closed the week at 1.17730 ahead of ECB’s meeting and US advanced Q3 GDP.
The pair was driven by the politics last week. Another important point is yield spreads are moving significantly against EURUSD, with ECB balance sheet expansion to continue deep into 2018.
Yield differentials alone suggest EURUSD could test the EMA 100 around 1.1650, assuming that the ECB on Thu confirms QE will continue to at least Sep 2018.