China-related growth uncertainty has been keeping risk sentiment unstable for most of the week. Nevertheless, by the end of the week investors’ focus shifted back to conditions in the US and Eurozone. While next week’s US labour data may keep expectations of the Fed considering higher rates ahead of the end of the year intact, ECB President Draghi may have to consider a more dovish rhetoric in order to prevent inflation expectations from falling further. All of the above suggests that EUR/USD will face heightened downside risk. When it comes to risk sentiment it will depend on global liquidity expectations to drive ... (full story)