12 Feb 2015
EUR/USD remains a sell on rallies – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, suggested that occasional bullish attempts in EUR/USD could represent selling opportunities.
Key Quotes
“Diminished Grexit risk and potentially firmer Eurozone PMIs next week, building on recent signs of stabilization, may admittedly give EUR a boost toward 1.15 but we suspect these gains will prove fleeting and favour selling any such strength”.
“The onset of ECB sovereign QE in less than month and rising Fed rate hike risks as soon as mid-2015 are surely likely to be far more consequential for the exchange rate”.
“EUR/GBP is trading at the lower end of the 0.74-0.76 range that has been in play for a few weeks. Even as ECB sovereign QE looms, it is hard to see EUR/GBP breaking sharply lower, especially given strong odds of a highly fractured result in the looming UK general election. More two-way action the order of the day for EUR/GBP”.
“EUR/CHF stabilizing near 1.05 amid the SNB’s reported soft corridor but suspect it may well drift lower in coming months amid ECB QE and ongoing conflict in Ukraine”.
Key Quotes
“Diminished Grexit risk and potentially firmer Eurozone PMIs next week, building on recent signs of stabilization, may admittedly give EUR a boost toward 1.15 but we suspect these gains will prove fleeting and favour selling any such strength”.
“The onset of ECB sovereign QE in less than month and rising Fed rate hike risks as soon as mid-2015 are surely likely to be far more consequential for the exchange rate”.
“EUR/GBP is trading at the lower end of the 0.74-0.76 range that has been in play for a few weeks. Even as ECB sovereign QE looms, it is hard to see EUR/GBP breaking sharply lower, especially given strong odds of a highly fractured result in the looming UK general election. More two-way action the order of the day for EUR/GBP”.
“EUR/CHF stabilizing near 1.05 amid the SNB’s reported soft corridor but suspect it may well drift lower in coming months amid ECB QE and ongoing conflict in Ukraine”.