21 Jan 2016
EUR/GBP approaching a top - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that with Draghi signalling a return to an overtly dovish stance at January’s ECB meeting, we similarly shift to looking for downside risks to EUR and rate cut in March.
Key Quotes:
"With FX markets still nursing wounds from December’s unexpected reversal, though, investors may be slow to embrace this as an unconditional promise just yet.
This is likely to re-sensitize EUR to risk appetite going forward. Oil prices are likely to become a more important driver for EUR, particularly against USD.
These developments should temper the EUR’s outperformance on key crosses. We think EUR/GBP may be approaching a top for this cycle.
EUR/USD is likely to see heightened two-way risks. This may prevail until a sustained break of recent trading ranges provides a stronger directional impulse."
Key Quotes:
"With FX markets still nursing wounds from December’s unexpected reversal, though, investors may be slow to embrace this as an unconditional promise just yet.
This is likely to re-sensitize EUR to risk appetite going forward. Oil prices are likely to become a more important driver for EUR, particularly against USD.
These developments should temper the EUR’s outperformance on key crosses. We think EUR/GBP may be approaching a top for this cycle.
EUR/USD is likely to see heightened two-way risks. This may prevail until a sustained break of recent trading ranges provides a stronger directional impulse."