The markets will find it difficult to make a break from recent narrow ranges in the short term. The dollar is not in a good position to secure much support on yield grounds with the Fed still extremely cautious. The ECB is also likely to keep interest rates on hold for now. The Euro-zone economic trends will be watched very closely and there will be further structural fears. If there is a shift in expectations, the most likely trigger is that fears surrounding the Euro-zone and global economy will increase which will provide some defensive dollar support. Selling EUR/USD rallies above 1.4550 still looks the best short-term strategy.
