The European Central Bank (ECB) downshifted to a 25 bps hike as expected. The EUR/USD pair came off a bit on the announcement. Economists at TD Securities expect the 1.0950 mark to provide solid support.

Positioning squeeze but remain firm dip buyers

“Ultimately, we think the EUR reaction boils down mostly to disappointed positioning. Markets had to reprice some lingering expectations of a 50 bps hike.”

“We continue to look for a break of 1.10 and would look to buy short-term dips towards 1.0950.”