While EUR/USD fell to a multi-year low last week on a further divergence in Fed-ECB monetary policy expectations, we see limited short-term downside from here. Our reasons for this non-consensus view are thus. First, the ECB is unlikely to make a case for additional policy action anytime soon with President Draghi already stressing latest measures may prove sufficient to return inflation to target. Second, we perceive room for FOMC members speaking this week to dampen tightening expectations in the wake of last Friday’s payrolls. Importantly, we note forward inflation expectations have fallen considerably in recent ... (full story)