EUR/USD: positive German coalition talks has failed to support bullish case - Scotiabank

Analysts at Scotiabank explained that the successful conclusion of German coalition talks has failed to offer support and market participants appear unimpressed by upgrades to the European Commission’s forecast—looking to 2.3% euro area growth in 2018. 

Key Quotes:

"The outlook for relative central bank policy remains crucial as ECB policymakers manage expectations for upcoming changes to forward guidance. 

The prospect of a ‘short taper’ has been mooted anonymously and several high-level policymakers (Weidmann—Bundesbank, Praet—ECB Chief Economist, Villeroy— Banque de France, and Mersch—ECB Executive Board) are scheduled to speak over the next 24 hours."