7 Apr 2015
FOMC minutes could push EUR/USD higher – Danske Bank
FXStreet (Edinburgh) - Flemming Nielsen, Senior Analyst at Danske Bank, sees the possibility that the pair might squeeze higher on a dovish tone from the FOMC minutes tomorrow.
Key Quotes
“The worse than expected US payrolls report on Friday added to the stream of disappointing data out of the US lately, and has sent EUR/USD back to around the 1.10 level”.
“In our view, it will take a turn in the surprise gap for the tide to turn in favour of the US economy and USD strength to re-emerge”.
“However, we do still see another leg lower in the cross on a 3-6M horizon as the current US soft patch is set to prove temporary, in our view”.
“The week ahead will see FX markets focused on central bankers with notably the FOMC minutes tomorrow of interest: if USD strength proves a significant worry, EUR/USD could edge higher near term despite the Greek issue looming”.
Key Quotes
“The worse than expected US payrolls report on Friday added to the stream of disappointing data out of the US lately, and has sent EUR/USD back to around the 1.10 level”.
“In our view, it will take a turn in the surprise gap for the tide to turn in favour of the US economy and USD strength to re-emerge”.
“However, we do still see another leg lower in the cross on a 3-6M horizon as the current US soft patch is set to prove temporary, in our view”.
“The week ahead will see FX markets focused on central bankers with notably the FOMC minutes tomorrow of interest: if USD strength proves a significant worry, EUR/USD could edge higher near term despite the Greek issue looming”.