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2 Apr 2015
EUR/USD could climb above 1.10 near-term – Westpac
FXStreet (Edinburgh) - Strategist Richard Franulovich at Westpac does not rule out the pair breaking the 1.10 barrier in the near term.
Key Quotes
“EUR/USD looks torn between ongoing ECB QE on the one hand and a relentless run of weaker US data on the other”.
“EUR/USD may be in the early stages of settling into a wide 1.05-1.10 range, though we have a nagging feeling it may well explore higher levels near term given the FOMC minutes next week are sure to expand on that meeting’s dovish tilt, where the economy was downgraded from ‘solid’ to ‘moderate’ and the interest rate dots were cut back sharply”.
“However, still see EUR/USD and EUR/GBP down on a three month horizon given that US and UK growth trends are ultimately healthier than the Eurozone and policy differentials will still ultimately trend in the USD’s favour”.
Key Quotes
“EUR/USD looks torn between ongoing ECB QE on the one hand and a relentless run of weaker US data on the other”.
“EUR/USD may be in the early stages of settling into a wide 1.05-1.10 range, though we have a nagging feeling it may well explore higher levels near term given the FOMC minutes next week are sure to expand on that meeting’s dovish tilt, where the economy was downgraded from ‘solid’ to ‘moderate’ and the interest rate dots were cut back sharply”.
“However, still see EUR/USD and EUR/GBP down on a three month horizon given that US and UK growth trends are ultimately healthier than the Eurozone and policy differentials will still ultimately trend in the USD’s favour”.