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25 Feb 2014
Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
FXStreet (Edinburgh) - The EUR/USD is extending the overnight consolidation pattern around 1.3740/45 on Tuesday, indifferent to the German GDP data and ahead of the Economic Growth Forecasts to be released by the European Commission.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “continues to stall just ahead of the 1.3805/78.6% retracement, and has done so for the past 5 trading days now. Focus is on the near term support at 1.3685 (Fridays low) while this holds the market remains slightly bid, however we continue to view the upside as limited”.
In light of the next ECB meeting, Analyst Pernile Nielsen at Dasnke Bank suggested, “the euro has not been able to perform better as low inflation is fuelling speculations that the ECB will have to ease further in the spring. This is also what we expect and it is the reason why we do not expect EUR/USD to go much higher from here”.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “continues to stall just ahead of the 1.3805/78.6% retracement, and has done so for the past 5 trading days now. Focus is on the near term support at 1.3685 (Fridays low) while this holds the market remains slightly bid, however we continue to view the upside as limited”.
In light of the next ECB meeting, Analyst Pernile Nielsen at Dasnke Bank suggested, “the euro has not been able to perform better as low inflation is fuelling speculations that the ECB will have to ease further in the spring. This is also what we expect and it is the reason why we do not expect EUR/USD to go much higher from here”.