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SEP 03, 2013 - Investopedia

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Flash: EUR/USD risks remain in abundant supply – BoA-ML

FXstreet.com (Lisbon) - The Bank of America/Merrill Lynch Investment team weighs mounting EUR/USD risks, coupled with other European events.Key quotes“We do not expect any action from the ECB although it could try and flatten further the rate curve. This could be achieved if it signaled a LTRO with a 25bp cut and a narrower corridor if conditions deteriorate.”Given the lack of concrete policy action, we may well see a similar pattern to GBP rates, where markets rallied into Carney's speech and sold off afterwards.    

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