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10 Sep 2013
Flash: EUR/USD trend higher unlikely - Danske Bank
FXstreet.com (Barcelona) - Danke Bank strategists note that yesterday, USD came under pressure as speculation mounted that the Fed will delay tapering after the weaker-than-expected payrolls report on Friday.
Key Quotes
“Our economists still look for tapering at the September meeting and we doubt that we are in for a major trend higher in EUR/USD.”
“But that said the IMM data from Friday showed that the market went into the payrolls report with many new long USD positions. Hence, the combinations of falling US yields and positioning might push EUR/USD slightly higher over the next couple of days.”
“Note that also from a technical perspective further upside is seen for EUR/USD, but strong resistance is seen at 1.3305. From a fundamental point of view we would sell the cross at this level, given our view on the timing of Fed tapering.”
Key Quotes
“Our economists still look for tapering at the September meeting and we doubt that we are in for a major trend higher in EUR/USD.”
“But that said the IMM data from Friday showed that the market went into the payrolls report with many new long USD positions. Hence, the combinations of falling US yields and positioning might push EUR/USD slightly higher over the next couple of days.”
“Note that also from a technical perspective further upside is seen for EUR/USD, but strong resistance is seen at 1.3305. From a fundamental point of view we would sell the cross at this level, given our view on the timing of Fed tapering.”