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27 Mar 2015
EUR/USD neutral bias into next week – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, maintains a neutral outlook for EUR/USD into next week, expressing doubts over the sustainability of the recent rebound.
Key Quotes
“The US dollar is still in the process of correcting lower following the more dovish than expected FOMC meeting. It is not yet clear the correction lower is fully complete although the scope for further downside would appear limited unless US dollar weakness temporarily undershoots relative to fundamentals.”
“Any further upside for EUR/USD is likely to capped at around the 1.1200-level where the 55-day moving average is located.”
“Leading economic indicators for March will be watched closely for any signals that US economic growth is beginning to rebound after a weak start to the year. Some moderation in employment growth appears likely given the economy has slowed although it should remain strong. Fed Chair Yellen will also be speaking on monetary policy in the week ahead.”
“The euro has benefitted at least temporarily from the more dovish outlook for Fed policy.”
“In addition, cyclical momentum in the euro-zone economy appears to have strengthened further offering limited support for the euro in the near-term.”
“The main focus in the week ahead will likely be on whether Greece is able to present a credible economic reform plan to satisfy its creditors as it is quickly running out of money which poses some downside risks for the euro.”
“EUR/USD – Neutral Bias – (1.0800-1.1200)“
Key Quotes
“The US dollar is still in the process of correcting lower following the more dovish than expected FOMC meeting. It is not yet clear the correction lower is fully complete although the scope for further downside would appear limited unless US dollar weakness temporarily undershoots relative to fundamentals.”
“Any further upside for EUR/USD is likely to capped at around the 1.1200-level where the 55-day moving average is located.”
“Leading economic indicators for March will be watched closely for any signals that US economic growth is beginning to rebound after a weak start to the year. Some moderation in employment growth appears likely given the economy has slowed although it should remain strong. Fed Chair Yellen will also be speaking on monetary policy in the week ahead.”
“The euro has benefitted at least temporarily from the more dovish outlook for Fed policy.”
“In addition, cyclical momentum in the euro-zone economy appears to have strengthened further offering limited support for the euro in the near-term.”
“The main focus in the week ahead will likely be on whether Greece is able to present a credible economic reform plan to satisfy its creditors as it is quickly running out of money which poses some downside risks for the euro.”
“EUR/USD – Neutral Bias – (1.0800-1.1200)“