EUR/USD expected to stabilise above 1.10 levels

21 May, 2015

Richard Franulovich of Westpac, expects US data next week to underwhelm the recovery of the economy, and hence expects EUR/USD to stabilize at current levels.

Key Quotes

“EUR/USD trading poorly in recent sessions but the foundations for the recent leg lower – the ECB’s decision to front-load QE ahead of thinner/illiquid bond market conditions in summer – seem weak since the ECB will of course buy fewer bonds in summer as well and on balance the pace of purchases will continues to average EUR60bn per month.”

“US data next week (durable goods orders, regional PMIs and the second update of Q1 GDP) more likely than to underwhelm too.”

“In short EUR should stabilise here though we are wrong if 1.10 breaks. At 0.7140 EUR/GBP is at the lower end of its range and should bounce here. Certainly the atmospherics play to that, with core inflation skidding down to 0.8%, its lowest levels in 14 years.”

“EUR/CHF risks remain skewed lower amid ongoing Greek concerns and ever present risks of renewed geopolitical instability in Ukraine.”


Source link  
US Dollar finds buyers around 100.20

The greenback, measured by the US Dollar Index, stays under...

Gold consolidates near $1,260/oz

The ounce troy of the precious metal has reverted yesterday’s pullback and is now trading near session tops around $1,260...

Oil sits at multi-month troughs

Oil benchmarks on both sides of the Atlantic snapped a minor-bounce and traded modestly flat ahead of the European open, as investors remain wary heading towards the inventory report due to be published by the API later on the day...


Gold holding stable around $1318

After dipping to $1315 region, Gold has managed to recover the lost ground and is currently trading nearly unchanged around $1318 level, awaiting for fresh impetus from FOMC monetary policy decision...

Gold inching higher to reclaim $1300 level

Risk-off sentiment across global financial markets and broader USD weakness continues to boost demand for Gold, which has now moved within striking distance of reclaiming $1300 level for the first time since Jan. 2015...

Gold regains poise, set to test $ 1250

The bullion ran through fresh bids during the European session, now pushing further towards $ 1250 mark as we head closer towards the Fed interest rate decision...


Gold stays below $1200 in Europe, risk-on weighs

Gold prices recovered off lows, but stay below USD 1200 mark in Europe as the major European equity futures point to risk-on action after opening bell...

The Economic Week Ahead - January 18 - 22, 2016

United States: After the holiday break today (Martin Luther King, Jr. Day), the U.S. economic calendar may offer only limited last-minute insight for the Fed ahead of its policy decision the following week...

What is in store for global financial markets

Research Team at Goldman Sachs, expects global GDP growth to edge up from 3.1% in 2015 to 3.5% in 2016, although the improvement largely reflects stabilization in some of the hardest-hit EM economies...

  


Share: