28 Nov 2014
Focus to remain on the ECB meeting for EUR next week – FXStreet
FXStreet (Barcelona) - FXStreet Analyst and Editor, Omkar Godbole, notes that the main focus for EUR would be on the European Central Bank meet scheduled next Thursday as QE hopes will keep the currency pressurized.
Key Quotes
“The main focus would be on the European Central Bank meet scheduled next Thursday. Moreover, markets consider a sovereign QE a done deal and thus pricedin the expectation, which pushed the bond yields across the Eurozone to record lows. Moreover, markets consider a sovereign QE a done deal and thus pricedin the expectation, which pushed the bond yields across the Eurozone to record lows.”
“Apart from the ECB meet, the PMI private activity indices are due for release next week. A weak PMI print, especially in Germany, shall only add to the speculation that the ECB would announce a sovereign QE.”
“Meanwhile, the inflation expectations are likely to worsen as the energy and commodity prices continue to weaken. Hence, the EUR is likely to be sold on rallies in anticipation of a sovereign QE.”
“Given, the overall scenario, the ECB is unlikely to surprise markets by squashing hopes of QE. Thus, we are likely to see the EUR under pressure as we head into the Thursday’s meet."
“Overall the EUR/USD pair is likely to remain stuck in a range of 1.2350 to 1.2550, with a high possibility of a downside breakout towards 1.2280 ahead of the ECB meet.”
Key Quotes
“The main focus would be on the European Central Bank meet scheduled next Thursday. Moreover, markets consider a sovereign QE a done deal and thus pricedin the expectation, which pushed the bond yields across the Eurozone to record lows. Moreover, markets consider a sovereign QE a done deal and thus pricedin the expectation, which pushed the bond yields across the Eurozone to record lows.”
“Apart from the ECB meet, the PMI private activity indices are due for release next week. A weak PMI print, especially in Germany, shall only add to the speculation that the ECB would announce a sovereign QE.”
“Meanwhile, the inflation expectations are likely to worsen as the energy and commodity prices continue to weaken. Hence, the EUR is likely to be sold on rallies in anticipation of a sovereign QE.”
“Given, the overall scenario, the ECB is unlikely to surprise markets by squashing hopes of QE. Thus, we are likely to see the EUR under pressure as we head into the Thursday’s meet."
“Overall the EUR/USD pair is likely to remain stuck in a range of 1.2350 to 1.2550, with a high possibility of a downside breakout towards 1.2280 ahead of the ECB meet.”