8 Mar 2016
EUR/USD forecast: attention to EMU’s GDP – UOB and Danske Bank
The single currency has managed to retake the 1.10 handle and advance near 1.1030, on its way to test recent peaks in the 1.1070 area.
The research team at UOB Group noted “The daily closing of 1.1012 was just a few pips above the critical 1.1005/10 mentioned in recent updates. We are not convinced that the current movement is the start of a sustained up-move in EUR and would prefer to wait for clearer indication before turning bullish. In the meanwhile, this pair is expected to remain underpinned with solid support at 1.0900”.
In addition, Chief Analyst at Danske Bank Arne Rasmussen suggested “EUR/USD remains surprisingly resilient even for us, which suggests that market players are cautious to short the pair ahead of the ECB meeting on Thursday. Over the coming weeks, we are looking for a slight dip on relative rates but 1.05-1.08 should provide the floor. We strongly believe that EUR/USD should head substantially higher later in 2016 on valuation and current account differential”.
The research team at UOB Group noted “The daily closing of 1.1012 was just a few pips above the critical 1.1005/10 mentioned in recent updates. We are not convinced that the current movement is the start of a sustained up-move in EUR and would prefer to wait for clearer indication before turning bullish. In the meanwhile, this pair is expected to remain underpinned with solid support at 1.0900”.
In addition, Chief Analyst at Danske Bank Arne Rasmussen suggested “EUR/USD remains surprisingly resilient even for us, which suggests that market players are cautious to short the pair ahead of the ECB meeting on Thursday. Over the coming weeks, we are looking for a slight dip on relative rates but 1.05-1.08 should provide the floor. We strongly believe that EUR/USD should head substantially higher later in 2016 on valuation and current account differential”.