19 Jun 2015
EUR/USD: consolidation ahead before a USD rebound – BTMU
FXStreet (Barcelona) - According to Bank of Tokyo-Mitsubishi UFJ, the week ahead might see some EUR/USD consolidation in the 1.1200-1.1550 range, before resuming lower as the expected USD climb resumes.
Key Quotes
“The euro is likely to remain within a consolidation phase against the US dollar in the week ahead. The US dollar is likely to struggle to regain upward momentum in the near-term after the Fed signaled more caution about raising rates. Building evidence of strengthening US economic growth momentum should offer support for the US dollar although it is not yet strong enough to prompt the market to discount a faster pace of rate hikes.”
“The US dollar already appears weak relative to yield spreads which may also help to dampen further downside in the near-term. We continue to believe that the next likely move for the US dollar will be higher after the current period of consolidation ends.”
“EUR/USD – Neutral Bias – (1.1200-1.1550)”
Key Quotes
“The euro is likely to remain within a consolidation phase against the US dollar in the week ahead. The US dollar is likely to struggle to regain upward momentum in the near-term after the Fed signaled more caution about raising rates. Building evidence of strengthening US economic growth momentum should offer support for the US dollar although it is not yet strong enough to prompt the market to discount a faster pace of rate hikes.”
“The US dollar already appears weak relative to yield spreads which may also help to dampen further downside in the near-term. We continue to believe that the next likely move for the US dollar will be higher after the current period of consolidation ends.”
“EUR/USD – Neutral Bias – (1.1200-1.1550)”