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FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analysts are neutral on EUR/USD´s prospects ahead and expect the pair to continue ranging between 1.2950-1.3350.

They note that the Euro continues to remain relatively stable against USD, consolidating around 1.3000. Further, they see that the Euro is deriving support from the ongoing improvement in investor confidence in Eurozone assets. They feel that reduced downside risks to global growth combined with ever more abundant global liquidity is encouraging investor risk seeking behaviour.

They write, "The search for yield is helping to narrow the Eurozone sovereign credit risk premium increasing upside risks for the Euro in the near-term. The Eurozone economy is also benefiting from strengthening global growth with the pace of economic contraction easing heading into early 2013. Still the Eurozone economy remains in a recession with disinflationary pressures building arguing in favour of further monetary easing from the ECB ahead helping to dampen Euro upside potential."

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