23 May 2014
What’s the sentiment around the EUR/USD today? – Danske Bank and Commerzbank
FXStreet (Edinburgh) -The EUR/USD continues to grind lower at the end of the week, extending the sharp sell-off from recent peaks near 1.4000 the figure.
“The fair value estimate for EUR/USD indicated by our short-term financial model has declined from 1.3660 to currently 1.3600 over the past week. This is mainly driven by a 5bp (weighted) spread widening of peripheral bonds relative to Germany and thus the recent move lower in EUR/USD seems to be justified according to our models”, observed Kasper Kirkegaard, Chief Analyst at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “continues to focus on the 200 day ma at 1.3635. The market is seeing some minor consolidation and is not expected to hold here and we look for further losses to the 1.3476 2014 low en route to the 2012-2014 uptrend at 1.3397”.
“The fair value estimate for EUR/USD indicated by our short-term financial model has declined from 1.3660 to currently 1.3600 over the past week. This is mainly driven by a 5bp (weighted) spread widening of peripheral bonds relative to Germany and thus the recent move lower in EUR/USD seems to be justified according to our models”, observed Kasper Kirkegaard, Chief Analyst at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “continues to focus on the 200 day ma at 1.3635. The market is seeing some minor consolidation and is not expected to hold here and we look for further losses to the 1.3476 2014 low en route to the 2012-2014 uptrend at 1.3397”.