27 Jun 2013
Flash: Distant exit remarks from Draghi - Danske
FXstreet.com (London) - Danske Bank analysts said that following yesterday's ‘distant exit’ remarks from Draghi EUR/USD continued its losing streak and briefly dipped below the 1.30 level.
They continued suggesting that although relative rates continue to weigh on the euro, it now seems the story has turned more to one of EUR weakness than of USD strength, underpinned by a continued widening in euro peripheral spreads. They feel that euro may fight back somewhat today if data releases in the zone prove decent. They also noted that NOK strengthened a little on the drop in LFS unemployment but Scandi crosses could take a breather ahead of the Norwegian NAV unemployment tomorrow, which we think may add further to the NOK recovery.
They continued suggesting that although relative rates continue to weigh on the euro, it now seems the story has turned more to one of EUR weakness than of USD strength, underpinned by a continued widening in euro peripheral spreads. They feel that euro may fight back somewhat today if data releases in the zone prove decent. They also noted that NOK strengthened a little on the drop in LFS unemployment but Scandi crosses could take a breather ahead of the Norwegian NAV unemployment tomorrow, which we think may add further to the NOK recovery.