EUR/USD: BTMU expects a decline, but only after a consolidation period

In a note published today, BTMU believes that the euro will likely consolidate against the dollar next week.

"The dollar is expected to have difficulty regaining upward momentum in the short term while the Fed signaled its willingness to be cautious in raising the key rate. However, improved US data should support the dollar, but not be enough for the market to demonstrate its rate expectations.

Moreover, the dollar currently appears low given the rate spread, which could prevent a short-term decline.

We continue to believe that the next move of the dollar will be a rise after a period of consolidation, and we anticipate a short-term range between 1.1200 to 1.1550."