By
If the ECB signals that it will lower its already negative deposit rate in the months ahead, "the risks are now that we break the bottom end of the $1.12-$1.18 (euro-dollar) range that has persisted over much of the past year and could even test below $1.10," JPM AM's Currency Chief Investment Officer Roger Hallam said.
He added that with the ECB now appearing to be more willing to embrace a tiered deposit rate system that the "euro money market curve can flatten and potentially invert.