24 Mar 2015
EUR/USD poised for further upside? – Danske Bank
FXStreet (Edinburgh) - Chief Analyst Allan von Mehren at Danske Bank sees the likeliness of the pair to extend its recent corrective upside.
Key Quotes
“With preliminary PMIs set to stay strong for the euro zone versus a decline in the US in today's releases, the scene is set for another day with upside potential in EUR/USD, despite our call for the pair to head lower in one to six months”.
“Although last week's surprisingly dovish FOMC projections have likely cleared out part of the heavy long positioning in the USD, if we are right that US CPI will come in on the low side of expectations today, the USD could come under renewed pressure as markets might postpone a normalisation of Fed policy further”.
“Recent USD strength and oil sell-off will both mitigate pipeline inflationary pressure but we think the Fed will still be eager to get started on rate hikes”.
Key Quotes
“With preliminary PMIs set to stay strong for the euro zone versus a decline in the US in today's releases, the scene is set for another day with upside potential in EUR/USD, despite our call for the pair to head lower in one to six months”.
“Although last week's surprisingly dovish FOMC projections have likely cleared out part of the heavy long positioning in the USD, if we are right that US CPI will come in on the low side of expectations today, the USD could come under renewed pressure as markets might postpone a normalisation of Fed policy further”.
“Recent USD strength and oil sell-off will both mitigate pipeline inflationary pressure but we think the Fed will still be eager to get started on rate hikes”.