29 Apr 2014
EU inflation numbers an opportunity for EUR/USD to break 1.40 - HSBC
FXStreet (Bali) - The EUR is faced with a make-or-break event this week on European inflation data releases, notes Daragh Maher, Strategist at HSBC.
Key Quotes
"A downside surprise, even by a modest 0.1%, would get the market energised about QE and see the EUR substantially weaker. By contrast, an upside surprise may kill any thoughts of a near-term easing."
"Our forecasts are in line with consensus for the Eurozone measure, but we expect a stronger reading on the earlier German data. This would likely be the catalyst for a break of 1.40 on EUR-USD."
Key Quotes
"A downside surprise, even by a modest 0.1%, would get the market energised about QE and see the EUR substantially weaker. By contrast, an upside surprise may kill any thoughts of a near-term easing."
"Our forecasts are in line with consensus for the Eurozone measure, but we expect a stronger reading on the earlier German data. This would likely be the catalyst for a break of 1.40 on EUR-USD."