2 Jun 2014
EUR/USD downside limited? - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, believes further EUR downside to be limited.
Key Quotes
"The euro has stabilized ahead of this week’s upcoming ECB monetary policy meeting with EUR/USD finding support in the near-term at just above the 1.3600-level. Since the ECB’s last meeting on the 8th May, the EUR/USD rate has trended modestly weaker after hitting an intra-day high at just below the 1.4000-level."
"The ECB has provided strong signals that further monetary easing will likely be provided. A package of measures including refi and deposit rate cuts, and liquidity boosting measures potentially including a more conditional long-term refi operation have all been proposed as potential policy options."
"There now appears to be a higher hurdle for the ECB to surprise on the policy easing front at this week’s meeting. As a result, it is likely that the ECB may struggle to materially weaken the euro further in the near-term through policy easing alone."
Key Quotes
"The euro has stabilized ahead of this week’s upcoming ECB monetary policy meeting with EUR/USD finding support in the near-term at just above the 1.3600-level. Since the ECB’s last meeting on the 8th May, the EUR/USD rate has trended modestly weaker after hitting an intra-day high at just below the 1.4000-level."
"The ECB has provided strong signals that further monetary easing will likely be provided. A package of measures including refi and deposit rate cuts, and liquidity boosting measures potentially including a more conditional long-term refi operation have all been proposed as potential policy options."
"There now appears to be a higher hurdle for the ECB to surprise on the policy easing front at this week’s meeting. As a result, it is likely that the ECB may struggle to materially weaken the euro further in the near-term through policy easing alone."