7 May 2015
EUR/USD neutral bias for next week – BTMU
FXStreet (Barcelona) - The Bank of Tokyo-Mitsubishi UFJ team maintains a neutral bias for EUR/USD for next week, expecting the pair to remain in its 1.10-1.15 range.
Key Quotes
“The euro has continued to rebound against the US dollar in the near-term supported by both a reversal in US dollar strength and ECB QE trades. Economic data from the US is continuing to disappoint expectations failing to provide clear evidence that the economy is rebounding after stalling in Q1. Heightened uncertainty over the outlook for US growth is weighing on the US dollar in the near-term.”
“The payrolls report tomorrow will be watched closely to assess further the persistence of the growth slowdown, and for evidence that the tightening labour market is resulting in stronger wage growth.”
“The market is positioned for a downside surprise following the weaker than expected ADP survey which has already weighed on the US dollar.”
“The latest US retail sales report for April will also be in focus to assess if consumer spending is strengthening.”
“The euro is rebounding more broadly as well supported by the sharp adjustment higher in euro-zone yields. Position adjustment is likely exaggerating euro strength in the near-term. Yield spreads with overseas remain unfavourable for sustained euro rebound.”
“The main focus in the week ahead beyond gyrations in euro-zone yields will be the upcoming Eurogroup meeting. An agreement to extend financing to Greece continues to remain elusive.”
“EUR/USD – Neutral Bias – (1.1000-1.1500)"
Key Quotes
“The euro has continued to rebound against the US dollar in the near-term supported by both a reversal in US dollar strength and ECB QE trades. Economic data from the US is continuing to disappoint expectations failing to provide clear evidence that the economy is rebounding after stalling in Q1. Heightened uncertainty over the outlook for US growth is weighing on the US dollar in the near-term.”
“The payrolls report tomorrow will be watched closely to assess further the persistence of the growth slowdown, and for evidence that the tightening labour market is resulting in stronger wage growth.”
“The market is positioned for a downside surprise following the weaker than expected ADP survey which has already weighed on the US dollar.”
“The latest US retail sales report for April will also be in focus to assess if consumer spending is strengthening.”
“The euro is rebounding more broadly as well supported by the sharp adjustment higher in euro-zone yields. Position adjustment is likely exaggerating euro strength in the near-term. Yield spreads with overseas remain unfavourable for sustained euro rebound.”
“The main focus in the week ahead beyond gyrations in euro-zone yields will be the upcoming Eurogroup meeting. An agreement to extend financing to Greece continues to remain elusive.”
“EUR/USD – Neutral Bias – (1.1000-1.1500)"