1 May 2015
Rallies in the Euro and the Cable lose momentum, change in direction imminent? – InvestingBetter
FXStreet (Barcelona) - Alpesh Patel of InvestingBetter, believes that the current rally in EUR/USD and GBP/USD a bit too exaggerating and against fundamentals, further adding that a turn to reality should be on the cards soon for the currencies.
Key Quotes
“The reason behind the decline of the Dollar has been the slowdown of the US economy and the chance that the Fed would delay raising rates. For those that thought that June was a possible date for the Fed to do so the disappointment is understandable but we have explained that this has to be the minority.”
“We continue to believe that the Fed is on course to tighten their interest rate policy probably on the September meeting.”
“As such we view the recent gains in the Euro and the Pound a bit exaggerated and most importantly not in touch with the fundamental outlook of the currencies. With the Euro now trading above the 1.1200 barrier and the Cable retreating to 1.5350 we believe that a serious turn to reality should come.”
“Looking ahead we most likely expect a consolidation attempt and range-trading for the Euro and the Cable over the next sessions.”
“Traders will turn their attention to the Non-Farm Payrolls report next Friday so we expect reduced volatility over the next days.”
“From a technical point of view, as long as the Euro remains above the 1.1100 support area and the Cable holds above the 1.5250 floor we shouldn’t expect much of a price action.”
Key Quotes
“The reason behind the decline of the Dollar has been the slowdown of the US economy and the chance that the Fed would delay raising rates. For those that thought that June was a possible date for the Fed to do so the disappointment is understandable but we have explained that this has to be the minority.”
“We continue to believe that the Fed is on course to tighten their interest rate policy probably on the September meeting.”
“As such we view the recent gains in the Euro and the Pound a bit exaggerated and most importantly not in touch with the fundamental outlook of the currencies. With the Euro now trading above the 1.1200 barrier and the Cable retreating to 1.5350 we believe that a serious turn to reality should come.”
“Looking ahead we most likely expect a consolidation attempt and range-trading for the Euro and the Cable over the next sessions.”
“Traders will turn their attention to the Non-Farm Payrolls report next Friday so we expect reduced volatility over the next days.”
“From a technical point of view, as long as the Euro remains above the 1.1100 support area and the Cable holds above the 1.5250 floor we shouldn’t expect much of a price action.”