29 Oct 2015
EUR/USD could extend its downside – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, sees the decline in the pair has further room in the near term.
Key Quotes
“EUR price action into the ECB’s 3 December meeting is likely to match historical analogues, an average 4-5% trade weighted fall in the month leading up to past Fed, ECB and BoJ QE announcements”.
“On the other side of the ledger, barring a desperately weak payrolls next week (i.e. sub-100k) Fed Dec lift-off odds are likely to hold in a semi-permanently higher 40-50% range after the FOMC statement. EUR’s break below 1.10 thus likely has legs”.
Key Quotes
“EUR price action into the ECB’s 3 December meeting is likely to match historical analogues, an average 4-5% trade weighted fall in the month leading up to past Fed, ECB and BoJ QE announcements”.
“On the other side of the ledger, barring a desperately weak payrolls next week (i.e. sub-100k) Fed Dec lift-off odds are likely to hold in a semi-permanently higher 40-50% range after the FOMC statement. EUR’s break below 1.10 thus likely has legs”.