15 Jun 2015
EUR/USD downside remains intact – Danske Bank
FXStreet (Edinburgh) - Chief Analyst Arne Rasmussen at Danske Bank expects the pair to resume its downside in the medium term.
Key Quotes
“We still believe that a considerable EUR/USD downside potential from relative rates remains, in particular as US data have begun to surprise to the upside and as a September Fed hike is edging closer”.
“In addition, IMM positioning data released Friday revealed the largest single week (week to 9 June) EUR short-covering since March 2014 - a move reflecting the recent substantial move higher in euro-zone rates”.
“While non-commercial EUR positioning is still in historically stretched territory, the recent bearish bet reductions in our view open up for more EUR downside potential; even more so in an environment where Greece headlines have turned sour”.
Key Quotes
“We still believe that a considerable EUR/USD downside potential from relative rates remains, in particular as US data have begun to surprise to the upside and as a September Fed hike is edging closer”.
“In addition, IMM positioning data released Friday revealed the largest single week (week to 9 June) EUR short-covering since March 2014 - a move reflecting the recent substantial move higher in euro-zone rates”.
“While non-commercial EUR positioning is still in historically stretched territory, the recent bearish bet reductions in our view open up for more EUR downside potential; even more so in an environment where Greece headlines have turned sour”.