30 Apr 2015
EUR/USD bearish bias for the next week – BTMU
FXStreet (Barcelona) - The Team at Bank of Tokyo-Mitsubishi UFJ, maintains a fundamentally bearish bias on EUR/USD for the next, expecting the pair to maintain a 1.0900-1.1400 range.
Key Quotes
“The euro has rebounded sharply against the US dollar over the last week. The euro has derived support from the adjustment higher in euro-zone yields. It is the largest sell off in the euro-zone fixed income market since the ECB adopted QE.”
“There does not appear to be one clear trigger for higher euro-zone yields. The euro-zone economy appears to have strengthened further, market-based inflation expectations are increasing gradually, and investor concerns over a Greek default have eased.”
“The reshuffling of Greece’s bail-out negotiation team and greater involvement of Prime Minister Tsipras has raised investor optimism that an agreement to secure financing can be reached in the coming weeks.”
“The euro rebound has coincided with the sharpest correction lower for the US dollar since the uptrend started last summer. A shake out in positioning is likely exaggerating US dollar weakness in the near-term. US dollar weakness has extended following the release of the US GDP report for Q1 which has also dampened expectations for an economic rebound in Q2.”
“The latest ISM and ADP surveys will prove important in determining whether the US dollar correction extends further in the near-term.”
“EUR/USD – Bearish Bias – (1.0900-1.1400)”
Key Quotes
“The euro has rebounded sharply against the US dollar over the last week. The euro has derived support from the adjustment higher in euro-zone yields. It is the largest sell off in the euro-zone fixed income market since the ECB adopted QE.”
“There does not appear to be one clear trigger for higher euro-zone yields. The euro-zone economy appears to have strengthened further, market-based inflation expectations are increasing gradually, and investor concerns over a Greek default have eased.”
“The reshuffling of Greece’s bail-out negotiation team and greater involvement of Prime Minister Tsipras has raised investor optimism that an agreement to secure financing can be reached in the coming weeks.”
“The euro rebound has coincided with the sharpest correction lower for the US dollar since the uptrend started last summer. A shake out in positioning is likely exaggerating US dollar weakness in the near-term. US dollar weakness has extended following the release of the US GDP report for Q1 which has also dampened expectations for an economic rebound in Q2.”
“The latest ISM and ADP surveys will prove important in determining whether the US dollar correction extends further in the near-term.”
“EUR/USD – Bearish Bias – (1.0900-1.1400)”