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2 Apr 2015
EUR/USD neutral bias for the week ahead – BTMU
FXStreet (Barcelona) - The Bank of Tokyo-Mitsubishi UFJ Team, maintains a neutral bias on EUR/USD, expecting the pair to hold the 1.0550-1.1050 range for the week ahead, with the single currency awaiting a fresh catalyst to start a fresh leg lower.
Key Quotes
“The euro is currently consolidating at lower levels against the US dollar. Improving cyclical momentum in the euro-zone is offering only limited support for the euro.”
“The ECB’s aggressive monetary easing is keeping downward pressure on euro-zone yields and the euro. The frustratingly slow negotiations between the Greek government and its international creditors to extend financing to Greece continues to remain a side issue for euro direction in the near-term but still poses downside risks.”
“The recent correction for the lower US dollar following the more dovish FOMC meeting is complete. The US economy has started the year poorly but has had little negative impact on the US dollar.”
“There are tentative signs that the US economy is beginning to rebound which could offer support for the US dollar.”
“Another solid employment report would reinforce expectations that the recent slowdown in output is likely temporary. Still robust employment growth and stronger earnings growth would likely be required for the US dollar to regain upward momentum.”
“The Fed has signaled that rate hikes are likely to be gradual potentially beginning in September - a message likely to be reinforced by the release of the latest FOMC minutes.”
“EUR/USD – Neutral Bias – (1.0550-1.1050)”
Key Quotes
“The euro is currently consolidating at lower levels against the US dollar. Improving cyclical momentum in the euro-zone is offering only limited support for the euro.”
“The ECB’s aggressive monetary easing is keeping downward pressure on euro-zone yields and the euro. The frustratingly slow negotiations between the Greek government and its international creditors to extend financing to Greece continues to remain a side issue for euro direction in the near-term but still poses downside risks.”
“The recent correction for the lower US dollar following the more dovish FOMC meeting is complete. The US economy has started the year poorly but has had little negative impact on the US dollar.”
“There are tentative signs that the US economy is beginning to rebound which could offer support for the US dollar.”
“Another solid employment report would reinforce expectations that the recent slowdown in output is likely temporary. Still robust employment growth and stronger earnings growth would likely be required for the US dollar to regain upward momentum.”
“The Fed has signaled that rate hikes are likely to be gradual potentially beginning in September - a message likely to be reinforced by the release of the latest FOMC minutes.”
“EUR/USD – Neutral Bias – (1.0550-1.1050)”