5 Mar 2014
Flash: EUR benefits on Putin - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank said "EUR is benefitting from President Putin’s decision to order troops back to their bases.
Key Quotes:
"EUR is benefitting from President Putin’s decision to order troops back to their bases. On the fundamental front there was little reaction to a soft Eurozone PPI release, unexpectedly down –0.3%m/m and –1.4%y/y."
"The key this week is the ECB meeting on Thursday; however as GDP came in stronger than expected and some disinflationary pressures appear to be easing (while others, particularly from the programme countries appear tolerable); we do not expect a major revision to the ECB’s forecasts. This will leave policy action on hold and likely see President Draghi strike a similar tone to his comments in February."
"EUR/USD short‐term technicals: bullish but upward momentum has faded. Support lies at Friday’s open of 1.3710; while resistance comes in at Friday’s close of 1.3802."
Key Quotes:
"EUR is benefitting from President Putin’s decision to order troops back to their bases. On the fundamental front there was little reaction to a soft Eurozone PPI release, unexpectedly down –0.3%m/m and –1.4%y/y."
"The key this week is the ECB meeting on Thursday; however as GDP came in stronger than expected and some disinflationary pressures appear to be easing (while others, particularly from the programme countries appear tolerable); we do not expect a major revision to the ECB’s forecasts. This will leave policy action on hold and likely see President Draghi strike a similar tone to his comments in February."
"EUR/USD short‐term technicals: bullish but upward momentum has faded. Support lies at Friday’s open of 1.3710; while resistance comes in at Friday’s close of 1.3802."