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13 Apr 2015
EUR/USD, door open for another leg lower – Danske Bank
FXStreet (Edinburgh) - According to Sverre Holbek, Senior Analyst at Danske Bank, another down move in the pair could have already started.
Key Quotes
“We have for some time argued that last month’s move higher in EUR/USD should prove temporary as the negative seasonal effects on US data wane, exporters adapt to a stronger dollar and as markets begin pricing a 2015 Fed hike more aggressively”.
“Indeed, last Wednesday’s Fed minutes for the March meeting surprised markets by revealing that ‘several’ (historically means more than five) of the board’s 17 members had regarded June as the most likely month for take-off”.
“Together with an almost 15-year low in the jobless claims figure this has sent EUR/USD below 1.06 – in our view marking the beginning of the next move lower in the cross”.
Key Quotes
“We have for some time argued that last month’s move higher in EUR/USD should prove temporary as the negative seasonal effects on US data wane, exporters adapt to a stronger dollar and as markets begin pricing a 2015 Fed hike more aggressively”.
“Indeed, last Wednesday’s Fed minutes for the March meeting surprised markets by revealing that ‘several’ (historically means more than five) of the board’s 17 members had regarded June as the most likely month for take-off”.
“Together with an almost 15-year low in the jobless claims figure this has sent EUR/USD below 1.06 – in our view marking the beginning of the next move lower in the cross”.