Citi: Likely to still see two-way flows in EUR post ECB

We continue to see the EUR driven by two main forces – further dislocation in EM FX places upward pressure on the currency, while the potential of a Fed hike later this month keeps it from strengthening too much. EURUSD still range bound between 1.08-1.17, with the US NFP print tomorrow determining if we stabilize in the upper half or lower half of that band.

Overnight, the ECB increased the share limit for any given bond purchase by 8% (to 33% from 25%), which does not change the overall size of QE but it is relevant to the overall picture.

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