4 Nov 2013
Flash: EUR/USD still has downside potential - Danske Bank
FXstreet.com (Barcelona) - Danske Bank strategists note that the combination of low eurozone inflation data fuelling rate cut expectations and a less dovish than expected rhetoric from the FOMC pushed EUR/USD below 1.35 last week.
Key Quotes
“A part of the story is position unwinding and we now have the CFTC/IMM data for the week ending 22 October. The data show that speculators added further to long EUR/USD positions in the midst of the US government shutdown.”
“All in all, we believe that EUR/USD still has some downside potential and we believe that EUR/USD has peaked for now but that we should not expect to see 1.30 anytime soon.”
Key Quotes
“A part of the story is position unwinding and we now have the CFTC/IMM data for the week ending 22 October. The data show that speculators added further to long EUR/USD positions in the midst of the US government shutdown.”
“All in all, we believe that EUR/USD still has some downside potential and we believe that EUR/USD has peaked for now but that we should not expect to see 1.30 anytime soon.”