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19 Feb 2014
Flash: What’s the sentiment around the EUR/USD today? – Danske Bank and Commerzbank
FXStreet (Edinburgh) - The EUR/USD remains in the upper band of the weekly range, hovering over 2-month highs around 1.3755/60 ahead of the FOMC minutes
“We still expect to see EUR/USD eventually come under pressure from relative rates as our rate strategists see little potential for lower rates in the short end of the US money-market curve and also expect euro-zone rates to remain anchored by the ECB”, observed Christin Tuxen, Analyst at Danske Bank.
In another line, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “has eroded the 1.3740/35 resistance – this was the location of the recent high and 61.8% Fibonacci retracement, we suspect this may have just been stops however while above the 1.3663 near term support line the market does remain slightly bid”.
“We still expect to see EUR/USD eventually come under pressure from relative rates as our rate strategists see little potential for lower rates in the short end of the US money-market curve and also expect euro-zone rates to remain anchored by the ECB”, observed Christin Tuxen, Analyst at Danske Bank.
In another line, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “has eroded the 1.3740/35 resistance – this was the location of the recent high and 61.8% Fibonacci retracement, we suspect this may have just been stops however while above the 1.3663 near term support line the market does remain slightly bid”.