Forex Flash: Investors try to guess the ECB bias on euro - UBS

The hot event of the week is the ECB press conference and investors try to guess, what ECB President, Mario Draghi, will say on the recent appreciation of the euro. "He will give either a neutral or negative statement on the euro strength", says the UBS analyst team.

"We expect him to dislike excessive moves but will probably deny to call EURUSD at 1.35 already an excessive level", they comment. "Nevertheless, he is likely to signal that the ECB could always cut interest rates, if they think the euro moves too quick and by this cap the upside potential".