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22 May 2014
Downward pressures ahead for EUR/USD - BTMU
FXStreet (Guatemala) - FX Strategists at the Bank of Tokyo Mitsubishi UFJ explained the euro is likely to remain under modest downward pressure against the US dollar in the week ahead.
Key Quotes
"The euro is likely to remain under modest downward pressure against the US dollar in the week ahead. The EUR/USD spot rate is currently deriving support from its 200-day moving average which comes in at just below 1.3640."
"A break below would likely encourage an accelerated euro sell off in the near-term. ECB monetary easing expectations ahead of their next meeting in June are continuing to weigh modestly on the euro in the near-term."
"The ECB is expected to unveil a package of easing measures including lowering rates and boosting liquidity in the Eurosystem. The European parliamentary elections are also taking place although they are not expected to materially impact the value of the euro even if anti-EU parties gain a greater share of the vote, which appears likely."
"Inflows into peripheral euro-zone sovereign debt also appear to have eased in the near-term providing less support for the euro. Weaker than expected euro-zone economic growth in Q1 has in part triggered a widening in the euro-zone sovereign credit risk premium weighing on the euro."
"Still US yields remain near lows for the year offering little support for the US dollar in the near-term. The release of the US GDP report for Q1 is expected to reveal a modest contraction."
Key Quotes
"The euro is likely to remain under modest downward pressure against the US dollar in the week ahead. The EUR/USD spot rate is currently deriving support from its 200-day moving average which comes in at just below 1.3640."
"A break below would likely encourage an accelerated euro sell off in the near-term. ECB monetary easing expectations ahead of their next meeting in June are continuing to weigh modestly on the euro in the near-term."
"The ECB is expected to unveil a package of easing measures including lowering rates and boosting liquidity in the Eurosystem. The European parliamentary elections are also taking place although they are not expected to materially impact the value of the euro even if anti-EU parties gain a greater share of the vote, which appears likely."
"Inflows into peripheral euro-zone sovereign debt also appear to have eased in the near-term providing less support for the euro. Weaker than expected euro-zone economic growth in Q1 has in part triggered a widening in the euro-zone sovereign credit risk premium weighing on the euro."
"Still US yields remain near lows for the year offering little support for the US dollar in the near-term. The release of the US GDP report for Q1 is expected to reveal a modest contraction."