30 Apr 2014
US, EMU calendar to leave EUR range bound – Danske Bank
FXStreet (Edinburgh) - Chief Analyst Allan von Mehren at Danske Bank remarked the importance of today’s docket in the euro area and in the US economy.
Key Quotes
“Lots of important data from the US and the EU to focus on today with the FOMC meeting and the euro-zone flash CPI estimate for April as the highlight”.
“Following the lower-than-expected German figures yesterday, our economists have revised down their expectations for the euro-zone CPI to 0.7% y/y (from 0.8%) in April. While still below the ECB’s own projections, it is not likely to trigger any further easing in connection with the ECB meeting next week”.
“We expect the Fed to taper another 10bn, which is also the consensus in the market, and overall the FOMC meeting is not likely to have any significant market impact”.
“Hence, EUR/USD might still be trapped in a range around the 1.38 as long as we do not see a significant re-pricing of one of the two central banks”.
Key Quotes
“Lots of important data from the US and the EU to focus on today with the FOMC meeting and the euro-zone flash CPI estimate for April as the highlight”.
“Following the lower-than-expected German figures yesterday, our economists have revised down their expectations for the euro-zone CPI to 0.7% y/y (from 0.8%) in April. While still below the ECB’s own projections, it is not likely to trigger any further easing in connection with the ECB meeting next week”.
“We expect the Fed to taper another 10bn, which is also the consensus in the market, and overall the FOMC meeting is not likely to have any significant market impact”.
“Hence, EUR/USD might still be trapped in a range around the 1.38 as long as we do not see a significant re-pricing of one of the two central banks”.