9 Apr 2014
What’s the sentiment around the EUR/USD today? – OCBC Bank and Commerzbank
FXStreet (Edinburgh) - The EUR/USD is hovering over the high 1.3700s on Wednesday, clinging to the critical barrier at 1.3800.
“The EUR also received additional wind behind its sails after the IMF upgraded its growth forecast for the EZ on Tuesday. However, we note that the EUR was a conspicuous laggard on Tuesday given the baggage from the ECB and market suspicions that the central bank may be keeping a closer watch on the EUR’s valuation (relative to fundamentals). In the near term, barring a further dollar meltdown, progress above 1.3800 towards 1.3870 may prove grudging”, commented Emmanuel Ng, FX Strategist at OCBC Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested “The rally is viewed as corrective and is indicated to still terminate at 1.3835/40. Above here will neutralise the immediate outlook (however we continue to view 1.40 as an intermediate top)”.
“The EUR also received additional wind behind its sails after the IMF upgraded its growth forecast for the EZ on Tuesday. However, we note that the EUR was a conspicuous laggard on Tuesday given the baggage from the ECB and market suspicions that the central bank may be keeping a closer watch on the EUR’s valuation (relative to fundamentals). In the near term, barring a further dollar meltdown, progress above 1.3800 towards 1.3870 may prove grudging”, commented Emmanuel Ng, FX Strategist at OCBC Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested “The rally is viewed as corrective and is indicated to still terminate at 1.3835/40. Above here will neutralise the immediate outlook (however we continue to view 1.40 as an intermediate top)”.