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9 Aug 2013
Flash: EUR/USD continues to drift higher - BTMU
FXstreet.com (Barcelona) - Bank of Tokyo Mitsubishi UFJ analsys are neutral on EUR/USD for the week ahead and believe spot will be contained between 1.3200 and 1.3500.
Key Quotes
“The euro continues to drift higher against the US dollar with EUR/USD rising towards the top of the trading range that has persisted throughout 2013.”
“The euro is deriving support from improving cyclical conditions in the euro-zone with the stronger than expected Italian GDP report for Q2 reinforcing investor confidence that the euro-zone economy has exited recession.”
“The improving growth outlook combined with the limited political fall out so far from former Italian PM Berlusconi’s failure to over turn his conviction for fraud are resulting in the euro-zone sovereign credit risk premium easing.”
“EUR/USD’s drift higher is also being driven by investors paring long US dollar positions which likely accelerated after the dollar index fell below support from its 200-day moving average at just above 81.50.”
“The weaker than expected US employment report for July is still weighing modestly upon the US dollar in the near-term although Fed speakers have signaled since that QE tapering could still begin in September with the US economy currently regaining upward momentum.”
Key Quotes
“The euro continues to drift higher against the US dollar with EUR/USD rising towards the top of the trading range that has persisted throughout 2013.”
“The euro is deriving support from improving cyclical conditions in the euro-zone with the stronger than expected Italian GDP report for Q2 reinforcing investor confidence that the euro-zone economy has exited recession.”
“The improving growth outlook combined with the limited political fall out so far from former Italian PM Berlusconi’s failure to over turn his conviction for fraud are resulting in the euro-zone sovereign credit risk premium easing.”
“EUR/USD’s drift higher is also being driven by investors paring long US dollar positions which likely accelerated after the dollar index fell below support from its 200-day moving average at just above 81.50.”
“The weaker than expected US employment report for July is still weighing modestly upon the US dollar in the near-term although Fed speakers have signaled since that QE tapering could still begin in September with the US economy currently regaining upward momentum.”