10 Apr 2014
EUR/USD for 1.4000 - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank expects a test of 1.40 on flows.
Key Quotes:
"Fed policy as well as the reluctance by the ECB to act even as disinflationary pressures continue. French inflationary pressures are falling, with today’s CPI release soft at 0.4%m/m and 0.6%y/y on headline."
"This, combined with some of the inflation data from the smaller counties, suggest that next week’s Eurozone CPI release will be close to the flash estimate of 0.5% and will weigh heavily on the ECB. Today, the Bundesbank’s Weidmann reiterated that if there is an extended period of low inflation the ECB will consider unconventional tools. Noteworthy today was Greece’s reentry to markets, raising €3bn in 5‐year debt, officially marking the passing of the peak of its crisis."
"EUR/USD short‐term technicals: mixed but turning increasingly bullish—today the MACD generated a buy signal and the 9‐day MA is flirting with a break above the 21‐day. We expect a near‐term test of the March high of 1.3967 followed by a break to 1.4000."
Key Quotes:
"Fed policy as well as the reluctance by the ECB to act even as disinflationary pressures continue. French inflationary pressures are falling, with today’s CPI release soft at 0.4%m/m and 0.6%y/y on headline."
"This, combined with some of the inflation data from the smaller counties, suggest that next week’s Eurozone CPI release will be close to the flash estimate of 0.5% and will weigh heavily on the ECB. Today, the Bundesbank’s Weidmann reiterated that if there is an extended period of low inflation the ECB will consider unconventional tools. Noteworthy today was Greece’s reentry to markets, raising €3bn in 5‐year debt, officially marking the passing of the peak of its crisis."
"EUR/USD short‐term technicals: mixed but turning increasingly bullish—today the MACD generated a buy signal and the 9‐day MA is flirting with a break above the 21‐day. We expect a near‐term test of the March high of 1.3967 followed by a break to 1.4000."