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27 Feb 2014
Flash: Big things to come for EUR - BTMU
FXStreet (Guatemala) - FX Strategists at the Bank of Tokyo Mitsubishi UFJ said, "The euro continues to remain relatively stable against the US dollar having failed earlier this week to break above the top of its recent 1.3400 to 1.3800 trading range".
Key Quotes
"The release tomorrow of the latest euro-zone CPI report for February will likely prove an important catalyst for EUR/USD direction in the week ahead."
"The euro is likely to remain on the defensive heading into next week’s ECB policy meeting with market participants wary that the ECB may ease monetary policy further and/or loosen liquidity conditions in the Eurosystem. Should the ECB disappoint easing expectations then it is likely that EUR/USD will return back towards the top of its recent trading range."
"In contrast, the ECB would likely need to lower its deposit rate into negative territory to test the bottom of its recent trading range. Economic weakness in the US in early 2014 continues to weigh modestly upon the US dollar. A third consecutive weak non-farm payrolls report would likely reinforce US dollar selling pressure although again it may be difficult to separate the weather impact."
Key Quotes
"The release tomorrow of the latest euro-zone CPI report for February will likely prove an important catalyst for EUR/USD direction in the week ahead."
"The euro is likely to remain on the defensive heading into next week’s ECB policy meeting with market participants wary that the ECB may ease monetary policy further and/or loosen liquidity conditions in the Eurosystem. Should the ECB disappoint easing expectations then it is likely that EUR/USD will return back towards the top of its recent trading range."
"In contrast, the ECB would likely need to lower its deposit rate into negative territory to test the bottom of its recent trading range. Economic weakness in the US in early 2014 continues to weigh modestly upon the US dollar. A third consecutive weak non-farm payrolls report would likely reinforce US dollar selling pressure although again it may be difficult to separate the weather impact."