13 Dec 2013
Flash: EUR weak, with eyes on next week’s inflation print - Scotiabank
FXstreet.com (Barcelona) - Camilla Sutton, Chief FX Strategist, at Scotiabank notes that EUR is weak, down 0.2% on a broader USD strengthening move.
Key Quotes
“Fundamental data was mainly second tier, with next week’s inflation print a key upcoming risk.”
“Highlighting one of the several factors that has supported EUR this year is the ongoing narrowing in the ECB balance sheet partially driven by LTRO repayments (with the ECB announcing today that €23bn of LTROs will be repaid next week); while the Fed’s balance continues to grow at a pace of $85bn per month.”
“As we move towards the AQR rumours of repatriation and balance sheet preparation are likely to increase.”
Key Quotes
“Fundamental data was mainly second tier, with next week’s inflation print a key upcoming risk.”
“Highlighting one of the several factors that has supported EUR this year is the ongoing narrowing in the ECB balance sheet partially driven by LTRO repayments (with the ECB announcing today that €23bn of LTROs will be repaid next week); while the Fed’s balance continues to grow at a pace of $85bn per month.”
“As we move towards the AQR rumours of repatriation and balance sheet preparation are likely to increase.”