Scenarios regarding the ECB and EUR/USD

With the dollar continuing its slow recovery, the ECB's stance on policy will be essential to determine the bearing of this pair. A softer ECB could send EUR/USD into a range or even an uptrend, as apparently the market wants QE or similar measures.

Some say the Mario Draghi will disappoint the markets tomorrow and we could visit 1.3700 once more. However, were the ECB to implement or hint at stronger measures in the future, the euro could plunge against a steadier US economy. With US employment data coming anything is possible.

Tomorrow we shall see.