14 Mar 2014
Flash: What’s the sentiment around the EUR/USD today? – BTMU and Commerzbank
FXStreet (Edinburgh) - The EUR/USD is now attempting to recover the 1.3880 level, extending the bounce off yesterday’s lows around 1.3850.
In light of recent comments by ECB’s Draghi, Currency Analyst Lee Hardman at BTMU assessed, “The EUR/USD rate may be able to rise towards the 1.45-level before triggering further ECB easing which would weigh more heavily upon the euro. ECB President Draghi remains optimistic that the ECB’s forward guidance will over time place downward pressure upon the euro as the real interest rate spread between the euro area and the rest of the world will probably fall”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, noted spot “reached but stalled around the 1.3958 50% retracement of the sell-off from the 2008 peak. We will need to see a close above here on a weekly basis to confirm a break higher and for now we expect the currency pair to consolidate below this level”.
In light of recent comments by ECB’s Draghi, Currency Analyst Lee Hardman at BTMU assessed, “The EUR/USD rate may be able to rise towards the 1.45-level before triggering further ECB easing which would weigh more heavily upon the euro. ECB President Draghi remains optimistic that the ECB’s forward guidance will over time place downward pressure upon the euro as the real interest rate spread between the euro area and the rest of the world will probably fall”.
In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, noted spot “reached but stalled around the 1.3958 50% retracement of the sell-off from the 2008 peak. We will need to see a close above here on a weekly basis to confirm a break higher and for now we expect the currency pair to consolidate below this level”.