5 Feb 2014
Flash: A small refi rate cut for ECB? - TDS
FXStreet (San Francisco) - Shaun Osbourne, Chief FX Strategist at TD Securities, comments that latest Eurozone data is helping some speculations that ECB would take further measures.
Key Quotes
"Eurozone service sector PMI data came in little changed from the preliminary data but disappointingly soft retail sales for the Eurozone overall in December (and downward revisions to November) will help sustain speculation that the ECB may stake some additional policy steps at Thursday’s meeting (minority call for a small refi rate cut, larger potential perhaps for liquidity measures) as inflation expectations ease further."
"EURUSD continues to consolidate last week’s sharp sell off from the 1.37 area but we think downside risks remain near-term; loss of support around 1.35 should see the downside move resume and push to 1.33/1.34 range."
Key Quotes
"Eurozone service sector PMI data came in little changed from the preliminary data but disappointingly soft retail sales for the Eurozone overall in December (and downward revisions to November) will help sustain speculation that the ECB may stake some additional policy steps at Thursday’s meeting (minority call for a small refi rate cut, larger potential perhaps for liquidity measures) as inflation expectations ease further."
"EURUSD continues to consolidate last week’s sharp sell off from the 1.37 area but we think downside risks remain near-term; loss of support around 1.35 should see the downside move resume and push to 1.33/1.34 range."